A monopolist
A) faces the same pressures to cut costs as a competitive firm does.
B) must use the most efficient technology or it will be driven out of business by firms that do.
C) is protected from competition by barriers to entry.
D) faces the same pressures to innovate as a competitive firm does.

Question

Quizplus · Accepted Answer

A monopolist is protected from competition by barriers to entry, which can include things like patents, control of a scarce resource, or high startup costs that prevent new firms from entering the market. This protection allows them to maintain their monopoly status without the same pressures to cut costs, use the most efficient technology, or innovate that competitive firms face.

A Monopolist