A monopolist would probably earn fewer profits if
A) the importance of specialized capital equipment in its production techniques increased.
B) the time length of patents increased.
C) environmental regulations increased that required the purchase of special capital equipment.
D) tariffs on competing products were lowered.

Question

Quizplus · Accepted Answer

Lowering tariffs on competing products would increase competition in the monopolist's market, potentially reducing the monopolist's market share and profits.

A Monopolist Would Probably Earn Fewer Profits If