select the correct answer. which statement is false? a. a monopoly sells lower - quality products at higher…

select the correct answer. which statement is false? a. a monopoly sells lower - quality products at higher prices than in a perfect competition. b. natural monopolies are necessary to avoid wasteful duplication of resources. c. the start - up costs in a monopolistically competitive industry are high. d. homogeneous products leave consumers with no choice.

select the correct answer. which statement is false? a. a monopoly sells lower - quality products at higher prices than in a perfect competition. b. natural monopolies are necessary to avoid wasteful duplication of resources. c. the start - up costs in a monopolistically competitive industry are high. d. homogeneous products leave consumers with no choice.

Answer

Brief Explanations:

  • In monopolistic - competition, firms can enter and exit relatively easily, so start - up costs are not high. In a monopoly, high barriers to entry create high start - up costs. Option A is true as monopolies have market power to charge higher prices and may offer lower quality. Option B is true as natural monopolies (e.g., utilities) avoid duplication. Option D is true as homogeneous products mean no product differentiation for consumer choice.

Answer:

C. The start - up costs in a monopolistically competitive industry are high.