"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:

Procedural Justice

The fairness of the processes that are used to make decisions, relating to how individuals feel they are treated during the decision-making process.

Voice

Refers to the means by which employees can express their concerns, ideas, or opinions within their workplace.

Bias

A tendency to lean in a certain direction, either in favor of or against a particular thing, person, or group compared with another, often in a way considered to be unfair.

Functional Turnover

The departure of employees from an organization that is beneficial, often because it opens opportunities for new talent.