"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:

Bill of Material

A comprehensive list of raw materials, components, and assemblies needed to manufacture or repair a product or service.

Grill Parts Kit

A set of replacement or upgrade components for a grill, including items like burners, grates, and igniters.

Washers

Flat disks with a hole in the middle, typically made of metal or plastic, used to distribute the load of a threaded fastener, like a bolt or nut.

Bolts

Fasteners consisting of a head and a cylinder-shaped body, with threading along part of its length, designed to be used with a nut.