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Monopoly

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Monopoly

  • This topic has 3 replies, 2 voices, and was last updated 3 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • May 17, 2022 at 7:28 pm #655918
    Varun.J.Thakkar
    Participant
    • Topics: 75
    • Replies: 112
    • ☆☆

    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

    May 18, 2022 at 6:24 am #655933
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54749
    • ☆☆☆☆☆

    It does seem as though it is an error 🙂

    May 18, 2022 at 3:30 pm #655964
    Varun.J.Thakkar
    Participant
    • Topics: 75
    • Replies: 112
    • ☆☆

    Thank u sir

    May 18, 2022 at 7:58 pm #655991
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54749
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Monopoly’ is closed to new replies.

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