Which statement is true?
A)The monopolist produces at an output level that is at peak efficiency.
B)The monopolist is guaranteed to make a profit because they have no competition.
C)The monopolist can get preferential tax breaks because of its political influence.
D)Overall,monopolists are very efficient.

Question

Quizplus · Accepted Answer

Monopolists may leverage their market power and political influence to secure preferential tax breaks or other favorable regulations, although this is not a guaranteed outcome for all monopolists. The other options are generally false: monopolists do not necessarily produce at peak efficiency (A), are not guaranteed to make a profit simply due to lack of competition (B), and are not inherently very efficient overall (D), as their lack of competition can reduce incentives for efficiency.

Which Statement Is True