Which of the following does not necessarily apply to a pure monopoly?
A)The product the firm produces must have no close substitutes.
B)The firm must be the sole producer of a product.
C)The firm will charge the highest price possible.
D)Entry must be blocked.

Question

Quizplus · Accepted Answer

Monopolies may not always charge the highest price possible because they might aim to maximize profits through other pricing strategies, such as price discrimination or setting a price to deter entry. Charging the highest price possible could reduce demand significantly, which is not always in the best interest of a monopoly aiming for profit maximization.

Which of the Following Does Not Necessarily Apply to a Pure