A monopolist's cost curves may shift down because
A)large-scale input purchases may permit the monopolist to take quantity discounts.
B)of advertising expenditure.
C)competitors are pushed out of the market.
D)of bureaucratic inefficiencies.

Question

Quizplus · Accepted Answer

Large-scale input purchases may permit the monopolist to take quantity discounts, which would decrease their overall costs and shift their cost curves down. The other options do not necessarily result in a shift in the cost curves.

A Monopolist's Cost Curves May Shift Down Because