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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Monopoly
Which of the following is NOT a reason governments seek to limit monopoly power
of companies?
A Output is produced at a higher price than necessary
B Reduced incentive to innovate
C Reduced price discrimination
D High prices to limit new market entrants
The correct answer is C which i understood why
Sir, can u please tell why D “is a reason” governments seek to limit monopoly power
They have given “Monopolies may charge higher prices to deter market entrants”
Dont monopolies charge lower prices to deter entrants?
Is there an error? Thanks
It does seem as though it is an error 🙂
Thank u sir
You are welcome 🙂
