Which of the following is true?

Question

Quizplus · Accepted Answer

None of the statements are true. A monopolist may not always earn positive economic profits if their costs are too high, as they must take into account the demand for their product at different prices. A monopolist may not charge the highest price possible as there may be a limit to what consumers are willing to pay, and there may be substitutes available. Finally, a monopolist may have an incentive to find more cost-efficient methods of production in order to increase their profits or to maintain their market power in the face of potential competition.

Which of the Following Is True