Future Electronics' body scanning machine has been adopted by the larger portion of the healthcare market.As a result,the company charges a high price from its customers,mainly hospitals.It is not investing much on innovation and its product variety is also very low.This cost borne by the users is referred to as:
A) marginal cost.
B) social cost.
C) monopoly cost.
D) deferred cost.

Question

Quizplus · Accepted Answer

The cost borne by the users (hospitals) due to the adoption of Future Electronics' body scanning machine is referred to as monopoly cost. This is because the company has a dominant position in the market and is able to charge high prices due to the lack of competition. The fact that the company is not investing much in innovation and has a low product variety further supports the notion that it has a monopoly.

Future Electronics' Body Scanning Machine Has Been Adopted by the Larger