There is an inherent tendency of a monopoly industry to
A)Lower prices and increase output.
B)Inhibit productivity advances.
C)Increase innovation.

Question

Quizplus · Accepted Answer

Monopoly industry tends to inhibit productivity advances because they do not face competition and have fewer incentives to innovate or improve their processes. They also have the power to set higher prices without fear of losing customers to competitors. Therefore, there is less pressure on them to improve their efficiency and productivity.

There Is an Inherent Tendency of a Monopoly Industry to