In their desire to achieve the quiet life,monopolists tend to allow costs to rise above competitive levels.

Question

Quizplus · Accepted Answer

Monopolists have the ability to increase prices above the competitive level, which allows them to earn higher profits. However, in doing so, they may face less competition, which can lead to a decrease in efficiency and an increase in costs. This can result in higher prices and reduced output, ultimately leading to a less efficient market. Therefore, in their quest for a quiet life, monopolists may allow costs to rise above competitive levels.

In Their Desire to Achieve the Quiet Life,monopolists Tend to Allow