Because a Monopolist Has No Incentive to Control Costs Under

question 224

Multiple Choice

Because a monopolist has no incentive to control costs under a policy of average-cost pricing, we can expect

• A) price to increase over time as costs rise.
• B) price to fall over time as costs rise.
• C) profits to increase over time as costs rise.
• D) profits to decrease over time as costs rise.

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