Can monopolists charge any price for their product? 

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In theory, a monopolist can set any price it wants. Absent the pressure to push prices down due to competition, the sole supplier of a good or service is free to charge its customers whatever amount it chooses. This, though, is theory. Depending upon the type of economy and the nature of the product, that freedom to set prices can be quite limited. In a command economy, in which every element of the industry, including the price charged to consumers, is dictated by the government, complete freedom to set the price is restricted. In a free market economy, such dictates may not exist. Other restraints on price, however, often do come into play. First, and this applies to most types of economy, the consumer may not be entirely dependent upon the monopolist. Depending upon the type of good or service, the consumer may have the luxury of simply refusing to purchase it. Acceptable alternatives might exist, even if those alternatives are not identical to the good or service provided by the...

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