Which of the following statements is true?
A)A monopolist can charge whatever price it wants without losing any customers, by virtue of its monopoly position.
B)A monopolist can always increase its profits by increasing its price.
C)In the monopoly market structure, there are low barriers to entry.
D)A monopolist is assured of positive economic profits.
E)none of the above

Question

Quizplus · Accepted Answer

Monopolists face demand curve constraints, potential regulatory and market backlash for excessive pricing, cannot always increase profits by raising prices due to elasticity of demand, face potential entry if barriers are not insurmountable or if regulatory changes occur, and are not guaranteed positive economic profits due to costs, competition, and market dynamics.

Which of the Following Statements Is True