Which of the following is not true?
A)A monopolist typically seeks to maximize profits.
B)A monopolist can set price at arbitrarily high levels.
C)Economies of scale are the cause of natural monopolies.
D)Monopolists price on the elastic portion of their demand curves.

Question

Quizplus · Accepted Answer

A monopolist cannot set prices at arbitrarily high levels without affecting the quantity demanded. Prices are constrained by the demand curve, meaning if prices are set too high, the quantity demanded will fall, potentially reducing profits.

Which of the Following Is Not True