When AT&T had a monopoly on telephones as a result of patents, it:
A)kept prices above the competitive level
B)created a shift in the demand for telephones
C)compelled consumers to search for telephone substitutes
D)compelled consumers to look after their telephones

Question

Quizplus · Accepted Answer

Monopolies often result in higher prices for consumers as the lack of competition allows the dominant company to charge more for their product or service. AT&T's monopoly on telephones allowed them to keep prices above what would be considered competitive.

When AT&T Had a Monopoly on Telephones as a Result