Question
Since monopolies are price makers, they can potentially generate unlimited profits.
Answer: Option B
:
B
Even though monopolies are price makers, the quantity they can sell at any price depends on the market demand. Hence, monopolies cannot generate unlimited profits by driving up the prices.
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:
B
Even though monopolies are price makers, the quantity they can sell at any price depends on the market demand. Hence, monopolies cannot generate unlimited profits by driving up the prices.
Was this answer helpful ?
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