When it comes to setting its price and operating inefficiently, a monopolist is restrained by:
A) laws prohibiting inefficient operations.
B) nothing inside or outside of its market.
C) the presence of other sellers in its market.
D) the presence of other products in closely related markets.

Question

Quizplus · Accepted Answer

A monopolist is restrained by the presence of other products in closely related markets because these alternatives can limit the monopolist's ability to set prices too high or operate inefficiently without losing customers to substitute products.

When It Comes to Setting Its Price and Operating Inefficiently