[EASY]Why does single price monopoly produce a smaller output and charge a higher price than would prevail if?

Question

the industry was perfectly competitive?

Answer 1

because as a monopolist they can only control one thing, either price or qty. In order to sell more qty, they must lower price....or to sell at a high price they must lower qty.

Since monopolists are interested in maximum overall profit, they sell less at a higher price. For each extra unit that is sold, the monopolist must lower the price a little....after a certain point, if the monopolists keeps increasing sales & reducing price, their total revenue starts to decrease....... since they dont want this, they sell less then what a firm would in perfect competition.