Question 50
Market StructuresWhich of the following does NOT represent the behaviour of a monopolist?
- A.Manipulating the market price of his goods
- B.Manipulating both the price and quantity of his goods at the same time
- C.Raising the price at one market, lowering it at another market
- D.Manipulating only quantity, price being a given factor
- E.Manipulating the quality of his goods.
Show the answer and explanation
Answer: B (Manipulating both the price and quantity of his goods at the same time)
Explanation
A monopolist faces a demand curve, so he can fix price or quantity but not both; buyers decide the other.