"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:

Strategic Planning

The process of defining an organization's strategy or direction and making decisions on allocating its resources to pursue this strategy.

Relational Concern

Relational Concern is the attention and consideration given to managing and nurturing relationships, emphasizing the importance of interpersonal connections and communication.

Power

The ability or capacity to direct or influence the behavior of others or the course of events.

Force

The exertion of power or influence to make someone or something act or move in a certain way, often used within the context of achieving objectives.