Which of the following is not true of monopolists?
A)The entry of new firms is not a major concern.
B)Monopolists seek to maximize profits.
C)Monopolists can charge any price they want and make a profit.
D)Monopolists can choose any point on the market demand curve.
E)Monopolists can raise price more than 10 percent.

Question

Quizplus · Accepted Answer

Monopolists cannot charge any price they want and still make a profit because they are constrained by the market demand curve. If they set the price too high, demand may drop significantly, reducing profits.

Which of the Following Is Not True of Monopolists