Suppose a lazy monopolist's fixed costs are lower than the fixed costs of an efficient monopolist. In all other respects, the monopolists are the same. Which of the following statements about this monopolist is true?
A) It charges a higher price than the monopolist producing efficiently.
B) It charges a lower price than the monopolist producing efficiently.
C) Its total revenue is the same as the monopolist producing efficiently.
D) It produces less than the monopolist producing efficiently.

Question

Quizplus · Accepted Answer

The lazy monopolist has lower fixed costs but operates the same way otherwise, so its pricing and output decisions remain unchanged, resulting in the same total revenue as the efficient monopolist.

Suppose a Lazy Monopolist's Fixed Costs Are Lower Than the Fixed