Which of the following is true of monopolies?
A)Monopolists are concerned about reaping their monopoly profits, which retards technological innovation.
B)Monopolists always produce on the inelastic part of the demand curve because increased output leads to greater revenue.
C)Welfare losses that occur in a monopoly cannot be calculated.
D)Monopolists never incur economic losses in the long run.
E)Pure monopolies are abundant because many goods and services have only one producer.

Question

Quizplus · Accepted Answer

Monopolists are known to be less concerned with technological innovation as they have no competition to worry about. They can maintain their profits by keeping their prices high and output lower, which ultimately retards technological innovation.

Which of the Following Is True of Monopolies