Monopoly Concepts Quiz

• Ignore monopolies to let the market self-regulate
• Regulate or break up monopolies to promote competition (correct)
• Impose higher taxes on monopolies to reduce their influence
• Provide subsidies to monopolies to encourage growth

• The monopolist operates in a perfectly competitive market
• The monopolist has no control over the market price
• The monopolist faces a perfectly elastic demand curve
• The monopolist faces a downward-sloping demand curve (correct)

• They lead to lower prices and higher output only in the short term
• They can lead to higher prices and lower output (correct)
• They have no impact on prices or output in the market
• They always lead to lower prices and higher output

<p>Charging different prices to different customers for the same product (B)</p> Signup and view all the answers

<p>Due to barriers to entry that prevent other firms from entering the market (D)</p> Signup and view all the answers