If a monopoly chooses the optimal price instead of the optimal quantity, then it

Question

If a monopoly chooses the optimal price instead of the optimal quantity, then its profits will be ( A. unchanged because the optimal price and quantity yield the same profit. OB. lower because costs are increasing in quantity g in price. O D. lower because consumers are more sensitive to price. OE. higher because a monopoly only has power to set price Why can't a monopoly choose both price and quantity? A monopoly can't choose both price and quantity because 0 A, a monopoly faces no competition. O B. a monopoly faces the treat of potential entrants O C. a monopoly has no supply curve D. a monopoly produces a homogeneous product. O E. a monopoly has the power to set price, not the demand curve.

Explanation / Answer

unchanged because the optimal price and quantity yield the same profit.

the above is the answer

a monopoly has the power to set price, not the demand curve.

the above is the answer

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