The "monopoly issue" is concerned with the fact that
A) monopolies will "charge what the traffic will bear" in order to maximize their profits.
B) monopolies will attempt to increase their profits by discriminating among their customers?and charge prices that they are willing to pay, instead of charging one price.
C) monopolies will be able to charge higher prices and earn higher rates of return than ?competitive firms.
D) all of the above apply.

Question

Quizplus · Accepted Answer

All three statements are true regarding the "monopoly issue." Monopolies can charge what the traffic will bear because they are the only supplier, and consumers have no other options. Monopolies can discriminate among their customers because they do not have to worry about competition. And monopolies can charge higher prices and earn higher rates of return than competitive firms because they do not have to worry about price competition from other firms.

The "Monopoly Issue" Is Concerned with the Fact That