Monopolies Usually Keep Their Prices at a Level That Generate

question 175

Multiple Choice

Monopolies usually keep their prices at a level that generate a reasonable, but not excessive, return primarily because

• A)they want to avoid new competitors entering their market.
• B)they want to avoid government regulations on their pricing.
• C)they try to satisfy the demands of value-conscious consumers.
• D)firms can increase market share more rapidly this way.
• E)customers will discontinue use of these products if prices rise.

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Definitions:

Caste System

A traditional social system in certain societies where people are divided into distinct ranks and classes from which it is difficult or impossible to move from one class to another.

Salaries

Periodic payments made by employers to employees, usually monthly or biweekly, in return for the performance of work.

Income

The money received, typically on a regular basis, for work or through investments.

Government Assistance

Programs or financial aid provided by the government to individuals, businesses, or other entities in need of support.