Oligopolies?
A. the price does no signal true cost
B. monopolists typically force customers to purchase more than they want to.
C. a monopolist may not produce at the lowest point of its average cost curve.
D. the quantity produced is typically less than in pure competitions.
Answer:
B.
One of the basic assumptions here is the profit maximization problem.
Point A is correct because oligopolists (like monopolists) has the power to set up prices to maximize their profits, so the price does not necessarily signal the true cost of producing the commodity.
They can and usually will produce less than the production level in a competitive situation. This also implies than point D is correct.
Point C is connected to this production level issue, where a monopolist can maximize profits by choosing the production level with higher price than the one in a competitive market.
The production level where the monopolist will start producing goods does not have to be on the lowest point of its average cost curve.
What matter the most is the profit.
The maximum profit for monopolist is when its MR equals MC.
Another explanation for point B actually is quite simple: how (or why) monopolists forces customers to purchase more than they want to is not in economic (at least in basic theory) area of interest.
It has something to do with the management on customer behavior. Most companies want to be able to do that, despite their being monopolists, oligopolists, or just typical price takers in a competitive market.
Note: An oligopolist is not a monopolist. Both share some similarities, but there are differences also.
B. is incorrect
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