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    A monopolist

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    Explain why a monopolist must lower its quantity relative to a perfectly competitive market to maximize profits. Make sure to elaborate use examples.

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    A monopolist tends to create artificial scarcity in the market so that he can sell his product at a higher price to generate more revenue. This is why a monopolist lowers the quantity supplied to the market in order to maximize his profits. This can be achieved in a ...

    Solution Summary

    A monopolist is exemplified.

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