Economics JAMB

A monopolist has the power to influence the prices of goods and services. Therefore, he is a?

A. price maker
B. price taker
C. price system
D. price competition

Correct Answer:

Option A – price maker

Explanation

Monopoly is a situation where there is a single producer and seller of a commodity for which there is no close substitute. This gives a monopolist the power to make/decide the price for a particular commodity.

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