"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:

Long-Term Benefit

Advantages or gains that accrue over a extended period of time, often seen as a result of strategic planning or investments.

Human Resource Management

The strategic approach to the effective management of an organization's workers so that they help the business gain a competitive advantage, including recruitment, training, and employee development strategies.

Limited Resources

The situation in which the availability of resources (such as time, money, and human skills) is restricted or not sufficiently available to meet demand.

Limited Resources

The condition of having finite assets available, necessitating the prioritization and efficient management of resources.