"Monopolists Do Not Worry About Efficient Production and Minimizing Costs

question 132

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, and lower costs will mean higher profits (or smaller losses).
• 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:

Organized Labor

Refers to unions or groups of workers who band together to negotiate for better working conditions, wages, and benefits.

McCarthyism

Post–World War Ⅱ Red Scare focused on the fear of communists in U.S. government positions; peaked during the Korean War; most closely associated with Joseph McCarthy, a major instigator of the hysteria.

Foreign Policy

A country's strategies and decisions in relation to its interactions with other nations, concerning diplomacy, military actions, trade, and treaties.

Civil Rights Initiatives

Programs, policies, or legislative actions aimed at ensuring and improving legal rights and social quality for all, particularly for marginalized groups.