Compared with a competitive market with the same cost and market demand circumstances,a monopolist has
A)Less pressure to reduce costs and less reason to improve quality.
B)Less pressure to reduce costs and more reason to improve quality.
C)More pressure to reduce costs and less reason to improve quality.
D)More pressure to reduce costs and more reason to improve quality.

Question

Quizplus · Accepted Answer

A monopolist has no direct competition and therefore has less pressure to reduce costs and improve quality. They have a greater ability to control the market price and may focus more on profit maximization rather than cost reduction or quality improvement.

Compared with a Competitive Market with the Same Cost and Market