"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.

Question

Quizplus · Accepted Answer

Monopolists do worry about efficient production and minimizing costs because price increases can lead to fewer sales, potentially lowering profits. They are not price takers and must consider demand elasticity.

"Monopolists Do Not Worry About Efficient Production and Minimizing Costs