-Which of the following is INCORRECT regarding monopoly and profits?
A) The mere existence of a monopoly does not guarantee high profits.
B) Numerous monopolies have gone bankrupt.
C) A monopolist will never experience economic losses.
D) The monopolist reaches profit-maximizing output by trial and error.

Question

-Which of the following is INCORRECT regarding monopoly and profits?
A) The mere existence of a monopoly does not guarantee high profits. 
B) Numerous monopolies have gone bankrupt. 
C) A monopolist will never experience economic losses. 
D) The monopolist reaches profit-maximizing output by trial and error.

Quizplus · Accepted Answer

A monopolist, like any other firm, can experience economic losses due to various factors such as high costs, poor management, or a decrease in demand. The statement that a monopolist will never experience economic losses is incorrect.

-Which of the Following Is INCORRECT Regarding Monopoly and Profits