When Nobel Laureate Sir John Hicks made the statement that: 'The best of all monopoly profit is a quiet life', he meant:
A) that monopolists often have a very low profile.
B) that earning monopoly profits allow people to retire early.
C) that monopolists are free from competition and so are not forced to innovate to survive.
D) that monopolists always earn economic profits.

Question

Quizplus · Accepted Answer

Hicks meant that the absence of competition makes it easier for monopolists to earn profits without having to constantly innovate or improve their products or services. This can lead to a "quiet life" where the monopolist can enjoy their profits without the pressure of competition. Therefore, option C is the best choice.

When Nobel Laureate Sir John Hicks Made the Statement That