A Monopolist Might Find It Profitable to Suppress an Innovative

question 30

Multiple Choice

A monopolist might find it profitable to suppress an innovative new product if:

• A)the firm would lose its monopoly status by introducing the invention.
• B)it owns all the sources of supply of the inputs used in the production process.
• C)it could prevent other firms from copying the invention.
• D)the projected demand for the product is inelastic.

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Definitions:

Equilibrium Price

Equilibrium price is the price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, resulting in a stable market situation.

Milk

A nutrient-rich liquid food produced by the mammary glands of mammals, widely consumed by humans and used in a variety of dairy products.

Government Storage

Facilities or locations maintained by governmental entities for storing commodities, essential goods, or records.

Cost of Production

The total expense incurred in creating a product or service, including labor, materials, and overhead.