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JAMB Economics 2014 Question 23

Question 23

Market Structures

One of the characteristics of a monopolist is that he can influence

  1. A.both price and quanity.
  2. B.price or quantity.
  3. C.quantity produced by other producers.
  4. D.prices charged by other producers.
Show the answer and explanation

Answer: B (price or quantity.)

Explanation

If the monopolist fixes the price, buyers decide how much to buy; if he fixes output, buyers decide the price. He cannot set both.