State true or false and justify your answer:

The monopolist can choose the price or the quantity, but not both simultaneously.

A monopoly is a market structure with the following characteristics:

• One supplier and many buyers.
• High levels of barriers to entry such as substantial initial capital outlay.
• The seller is a price maker with the ability to set and maintain both prices and quantity in the market. Monopolists sets prices of the product above the marginal cost and can manipulate supply through hoarding. However, they cannot set both the price and the quantity simultaneously because they still face a downward sloping demand curve where an increase in price reduces the quantity demanded (True).
• The firms make economic profits.
• These markets are characterized by inefficiencies in resource allocation and customer exploitation through high prices and low-quality goods.