Question

his is a good question to review how much you have learned about monopolies. Of the following eight statements, which one(s) is/are true? Choose one or more: A. A monopolist sells a good that has no close substitutes. B. A regulated monopolist is likely to have lower costs than an unregulated monopoly. C. Compared to a competitive market, monopolies typically charge a lower price and produce more output. D. One way governments can reduce the market power of domestic monopolies is to increase tariffs on imported goods. E. Rent seeking by monopolies imposes additional costs on society above the deadweight loss. F. Compared to a competitive firm, a monopoly’s demand curve is relatively elastic. G. Unregulated monopolies are illegal in the United States. H. A monopolist that sets a single profit-maximizing price will not set price along the inelastic portion of the demand curve.

Answer 1

Answer: A. A monopolist sells a good that has no close substitutes

E. Rent seeking by monopolies imposes additional costs on society above the deadweight loss.

H. A monopolist that sets a single profit-maximizing price will not set price along the inelastic portion of the demand curve.

Step-by-step explanation:

A monopoly is a market with a single seller for a certain product such that the sector is dominated by a company. A monopolist typically sells a good which has no close substitutes.

From the options given, the ones that are true regarding monopolist include:

• A monopolist sells a good that has no close substitutes.

• Rent seeking by monopolies imposes additional costs on society above the deadweight loss.

• A monopolist that sets a single profit-maximizing price will not set price along the inelastic portion of the demand curve.

Therefore, the correct options are A, E, H