Monopolies usually keep their prices at a level that generates a reasonable, but not excessive, return primarily because
A) they want to avoid new competitors entering their market.
B) they want to avoid government regulations on their pricing.
C) they try to satisfy the demands of value-conscious consumers.
D) firms can increase market share more rapidly this way.
E) customers will discontinue use of these products if prices rise.

Question

Quizplus · Accepted Answer

Monopolies often keep prices at a reasonable level to avoid attracting government scrutiny and potential regulation, which could occur if they are perceived as exploiting their market power excessively.

Monopolies Usually Keep Their Prices at a Level That Generates