Final answer:
The correct answer is option c. Monopoly producers are both less responsive to consumer demand and less diligent in minimizing production costs. They produce less, at higher costs, and charge higher prices, which can result in a lack of innovation due to the absence of competitive pressure.
Step-by-step explanation:
Compared to more competitive firms, monopoly producers tend to be less responsive to consumer demand and less diligent in minimizing the costs of production. Monopolists lack the productive efficiency of competitive firms because they don't operate at the minimum of the average cost curve. Moreover, monopolists aren't allocatively efficient as they produce at a quantity where the price (P) is higher than the marginal cost (MC), leading to reduced output and higher prices. The absence of competitive pressure means that monopolies may not have strong incentives for innovation, which is often driven by the threat of new entrants in more competitive markets.
Given these characteristics, the correct option to the question is c. Both of the above, indicating that monopoly producers are both less responsive to consumer demand and less diligent in minimizing production costs compared to more competitive firms.