"Monopolists Do Not Worry About Efficient Production and Minimizing Costs

question 221

Multiple Choice

"Monopolists do not worry about efficient production and minimizing costs since they can just pass along any increase in costs to their consumers." This statement is

• A)false; price increases will mean fewer sales, which may lower profits.
• B)true; this is the primary reason why economists believe that monopolies result in economic inefficiency.
• C)false; the monopolist is a price taker.
• D)true; consumers in a monopoly market have no substitutes to turn to when the monopolist raises prices.

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Definitions:

Thoracic Cavity

The compartment of the body located between the neck and the abdomen, housing organs such as the heart and lungs.

Spinal Cord

The spinal cord is a long, thin, tubular structure made up of nervous tissue that extends from the brainstem to the lower back, conducting signals between the brain and the body and controlling reflexes.

Homeostatic Control

The process by which the body maintains a stable internal environment despite changes in external conditions, involving feedback mechanisms.

Receptor

A protein molecule that receives and responds to chemical signals, such as hormones or neurotransmitters.