A monopolist might find it profitable to suppress an innovative new product if:
A)the firm would lose its monopoly status by introducing the invention.
B)it owns all the sources of supply of the inputs used in the production process.
C)it could prevent other firms from copying the invention.
D)the projected demand for the product is inelastic.

Question

Quizplus · Accepted Answer

If the innovation undermines the monopolist's control over the market or reduces its market power, the monopolist may choose to suppress the innovation to protect its position. This could occur if the innovation brings new competitors into the market that can lower prices and take market share away from the monopolist. Thus, the firm would lose its monopoly status by introducing the invention.

A Monopolist Might Find It Profitable to Suppress an Innovative