Question

Evaluate the following statement using economic reasoning “a monopolist can charge whatever she wants because she is the only source available”

Answer 1

Answer:

The question is kind of self explanatory. The monopolist controls a monopoly. A monopoly is the exclusive control of supplies or trade for services. If the monopolist is the only source for a product, she can charge whatever she wants. There is a demand for the product and she is the only source, therefore she will charge what she wants.

Explanation:

Answer 2

The statement "a monopolist could charge whatever she wants as she is the only available source" should be evaluated below:

The following information related to the monopoly is to be considered:

• It is a single seller market
• Only one seller is available in the market.
• Substitutes of the goods are not available in the market.
• Having strong barriers to entry.
• Do not enter other firms.

Therefore we can conclude that as a monopolist they have full control over the price as they are price maker.

Learn more about the monopolist here: brainly.com/question/5992626