"Monopolists Do Not Worry About Efficient Production and Minimizing Costs

"Monopolists do not worry about efficient production and minimizing costs since they can just pass along any increase in costs to their consumers." This statement is

A) false; price increases will mean fewer sales, and lower costs will mean higher profits (or smaller losses) .
B) true; this is the primary reason why economists believe that monopolies result in economic inefficiency.
C) false; the monopolist is a price taker.
D) true; consumers in a monopoly market have no substitutes to turn to when the monopolist raises prices.

Correct Answer:

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