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Homework answers / question archive / In economic reasoning, can a monopolist charge whatever she wants because she is the only source available?
In economic reasoning, can a monopolist charge whatever she wants because she is the only source available?
In economic reasoning, a monopolist is what is known as a ''price maker.'' A price maker has the ability to influence the price of a good which they provide for which there is no perfect substitute. It is important to note, however, that price makers are still subject to the demand curve and government regulations. Thus, a monopolist can charge whatever they want because they are the only source available while demand holds and while there is no government intervention.