Indicate whether each of the following statements is true or false: a. Because they can control product price, monopolists are always assured of profitable production by simply charging the highest price consumers will pay.

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Christina Ingram

21 November, 02:22

Indicate whether each of the following statements is true or false: a. Because they can control product price, monopolists are always assured of profitable production by simply charging the highest price consumers will pay.

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Brody Burnett · Answer 1

The statement is true. Because they can control product price, monopolists are always assured of profitable production by simply charging the highest price consumers will pay.

Explanation:

In economics, a monopoly is a term that describes an industry or other economic sector where control rests with one supplier as that supplier is the only one supplying the market. In theory, that means total control or "complete monopoly" but in practice most monopolies today are "quasi-monopolies", with a supplier dominating the market almost completely but with the space for a few small companies as well. The monopolist can get a high price for his product by limiting market supply so that the supply of goods is less than the demand for it.