When profits are regulated,monopolists are likely to increase their fixed costs.

Name: When profits are regulated,monopolists are likely to increase their fixed costs.
Brand: Quizplus
Rating: 4.9 (41 reviews)

Question

Quizplus · Accepted Answer

When profits are regulated, monopolists may respond by increasing their fixed costs as a way to decrease their profits and avoid additional regulation. By increasing fixed costs, the monopolist is able to limit the amount of profit they earn on each unit sold, reducing the likelihood that they will be subject to further regulation.

When Profits Are Regulated,monopolists Are Likely to Increase Their Fixed