Answer to Question #76008 in Macroeconomics for baba
Lonewolf Ltd is the sole manufacturer and supplier of solar panels in the country. As a result of this the CEO claimed in a recent meeting that he can set any price he wishes and sell as many units of his products as he wants at that price. Is this correct? Motivate your answer.(7) marks
If this company is the only supplier of solar panels in the country, it is a monopoly. Monopoly without any state control has the power to form the market for certain product – supply the good at any quantity and at any price.