Question

question
which of the following is true of monopolies?
answer
a firm that has a monopoly is likely to be more responsive to consumer needs.
a monopoly is a situation in which many sellers differentiate their products from those of competitors in at least some small way and are therefore able to charge different prices for them.
the u.s. federal trade commission and the department of justice must review mergers between large competitors to determine whether the combined firm would result in a monopoly that would thwart competition.
a firm that has a monopoly is likely to charge lower prices.
i dont know yet

Explanation:

• Analyze each option:
• First option: Monopolies have no competition, so they are less likely to be responsive to consumer needs (since there's no incentive from competition), so this is false.
• Second option: The description here is for monopolistic competition (many sellers with differentiated products), not monopoly (single seller), so this is false.
• Third option: In the U.S., the Federal Trade Commission and Department of Justice do review mergers of large competitors to prevent monopolies that harm competition. This is true.
• Fourth option: Monopolies can restrict output and charge higher prices (due to no competition), so they are unlikely to charge lower prices. This is false.

Answer:

The U.S. Federal Trade Commission and the Department of Justice must review mergers between large competitors to determine whether the combined firm would result in a monopoly that would thwart competition.