Question
ow do monopolies affect the price of goods?
Monopolies always result in higher prices.
Monopolies always result in lower prices.
Monopolies do not affect the cost of goods.
Monopolies lower and raise their prices at will.
Monopolies always result in higher prices.
Monopolies always result in lower prices.
Monopolies do not affect the cost of goods.
Monopolies lower and raise their prices at will.
Answers
GPT-4o mini
Monopolies generally result in higher prices for goods. In a monopolistic market, a single firm dominates the supply of a product or service, which allows it to set prices without competition. This lack of competition means that customers often have no alternative options, leading the monopoly to charge higher prices than would be typical in a competitive market. Therefore, the most accurate statement from your options would be:
**Monopolies always result in higher prices.**
However, it is worth noting that while monopolies tend to raise prices, they may also lower prices at times to drive out potential competitors, among other strategic reasons. But overall, the tendency is to increase prices due to reduced competition.
**Monopolies always result in higher prices.**
However, it is worth noting that while monopolies tend to raise prices, they may also lower prices at times to drive out potential competitors, among other strategic reasons. But overall, the tendency is to increase prices due to reduced competition.