Which of the follwing is "not" a problem with a monopoly?
1. MONOPOLISTS TYPICALLY FORCE CUSTOMERS TO PURCHSE MORE THAN THEY WANT TO.
2. A MONOPOLIST MAY NOT PRODUCE AT THE LOWEST POINT OF ITS AVERAGE COST CURVE.
Answer:
Number 1 that is.
The answer is (1)
Monopolies don't force people to purchase more than they want to. They raise the prices so people end up purchasing less.
1. it is definitely not a problem since monopoly produces less than competitive firms & cannot force consumers to do anything.
Your answer is (1)
Monopolists basically produce a limited amount of one product. Monopolist normally can force a higher price due to limited supply. This is also b/c the monopoly are the sole producers meaning they can set their own price for the item in question. Therefore consumers are not forced to purchse more than they want, but are forced to pay for the item in question at a higher price. (Not a higher quanity) When this happens people are not forced to purchase more of the item, but they have an incentive to move to subsitutes.
Q1 is not a problem
everyone can not force consumer to purchase more, they buy less because of the higher price
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