Do monopolists need to worry about producing efficiently and reducing costs?
A) Yes, because they are motivated by social considerations rather than profit.
B) Yes, since cost increases will decrease a monopolist's profits.
C) No, because the monopolist is a price taker.
D) No, since they can just pass along any increase in costs to their consumers.

Question

Quizplus · Accepted Answer

Monopolists need to worry about producing efficiently and reducing costs because any increase in costs will decrease their profits. They are motivated by profit and a decrease in profits will harm them financially.

Do Monopolists Need to Worry About Producing Efficiently and Reducing