Why the monopolists produce lower quantities at higher prices-00779

Online Quiz This subjective question is related to the book/course vu cs504 Software Engineering - I. It can also be found in vu cs504 Mid Term Solved Past Paper No. 3.

Question 1: Why the monopolists produce lower quantities at higher prices compared to perfectly competitive firms?

Answer:

1) Large initial fixed cost is involved2) Product differentiation or drabd loyalty3) Monopolistic controls the supply of key factors of production

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