CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

Monopolies will set a ______

A. higher price and a higher level of output than would be set under perfect competition.
B. lower price and a lower level of output than would be set under perfect competition.
C. higher price and a lower level of output than would be set under perfect competition.
Correct Answer: C

Monopolies create inefficiencies by restricting the level of output, thus increasing the price charged to consumers.

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