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JAMB Economics 2014 Question 24

Question 24

Market Structures

A monopolist can boost his revenue by

  1. A.increasing price.
  2. B.reducing price.
  3. C.adjusting both price and output upward.
  4. D.reducing total output to match the price.
Show the answer and explanation

Answer: A (increasing price.)

Explanation

A monopolist, as the only seller, raises his price; because buyers have no close substitutes, revenue rises.