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When compared to the other 3 market structures, monopolists charge the highest price for their products....

When compared to the other 3 market structures, monopolists charge the highest price for their products. Explain why this statement is true or false.

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Answer #1

The statement is true. When compared to the other 3 market structures, monopolists charge the highest price for their products. Monopoly market is characterized by a single seller selling a product having no close substitutes. Thus consumer does not have any other option left other than buying the product from the monopolist. In other markets there are other sellers and substitute products are available. This makes monopolist charge the highest price for their products as compared to other markets.

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