Which of the following statements is not correct?
A)Consumers will likely benefit in the form of lower prices from buying a product made by a natural monopoly than if the market were served by several firms.
B)Monopolists typically charge higher prices than competitive firms.
C)Monopolists typically produce larger quantities of output than competitive firms.
D)Consumers may benefit from monopolies if the firms invest their higher profits into something that benefits society such as medical research.

Question

Quizplus · Accepted Answer

Monopolists typically produce smaller quantities of output than competitive firms because they control the entire market and can raise prices without fear of losing customers. This allows them to maximize profits by producing less and charging higher prices.

Which of the Following Statements Is Not Correct