Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

CIMAPRA17-BA1-1 Exam - Topic 1 Question 70 Discussion

Actual exam question for CIMA's CIMAPRA17-BA1-1 exam
Question #: 70
Topic #: 1
[All CIMAPRA17-BA1-1 Questions]

Why do monopoly market structures charge higher prices than would be charged by more competitive market structures?

Show Suggested Answer Hide Answer
Suggested Answer: A

by Kattie at May 25, 2023, 07:40 AM

Limited Time Offer

25%

Off

Get Premium CIMAPRA17-BA1-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

0/2000 characters
Submit Cancel
Lea
5 months ago
Higher prices are all about profit maximization in monopolies.
upvoted 0 times
...
Dyan
5 months ago
Barriers to entry definitely keep prices up.
upvoted 0 times
...
Jackie
6 months ago
Wait, are they really spending that much on R&D? Seems off.
upvoted 0 times
...
Leontine
6 months ago
Totally agree, they just limit supply to hike prices!
upvoted 0 times
...
Sherill
6 months ago
Monopolies can set prices without competition.
upvoted 0 times
...
Cristal
6 months ago
I'm a bit confused about the research and development costs. Does that really justify higher prices, or is it more about market control?
upvoted 0 times
...
Stephane
6 months ago
I practiced a question similar to this, and I think it was about how monopolies can maximize profits by controlling supply. So, C might be correct.
upvoted 0 times
...
Helga
6 months ago
I remember something about barriers to entry being a big factor in monopolies. Maybe option D is the right choice?
upvoted 0 times
...
Pilar
6 months ago
I think monopolies charge higher prices because they can limit output, but I'm not sure if that's the main reason.
upvoted 0 times
...
Francine
6 months ago
I'm feeling pretty confident about this one. Operator log files are typically stored in the Ansible directory, which is option C. I'll select that answer.
upvoted 0 times
...
Loren
6 months ago
This looks like a pretty straightforward networking question. I'll need to think through the key requirements - synchronous replication, Fiber Channel SAN, and the 125 km distance.
upvoted 0 times
...
Rosenda
6 months ago
Hmm, I'm not sure about this one. I'll have to think it through carefully.
upvoted 0 times
...
Yun
6 months ago
Okay, let me think this through step-by-step. A sample is a subset of a population, so that makes sense. But it's also a measurable population characteristic, so I'm a bit torn between B and C. I'll have to re-read the question and options again.
upvoted 0 times
...
Reid
7 months ago
Okay, I think I've got this. The key is to look at the routing information being received by ISP1 from AS65401. Option C seems to be the correct configuration to resolve the issue.
upvoted 0 times
...
Velda
11 months ago
Wait, are we sure this isn't a trick question? What if the monopoly is just really, really efficient and that's why they can charge more? Just playing devil's advocate here.
upvoted 0 times
Yolande
10 months ago
C) They have barriers to entry that stop customers going to new markets
upvoted 0 times
...
Merlyn
10 months ago
B) They must recover their higher research and development expenditures
upvoted 0 times
...
Phyliss
10 months ago
A) They can increase profits by reducing output to force prices higher
upvoted 0 times
...
...
Kristian
11 months ago
Barrier to entry, huh? Sounds like a monopoly is just a really good business model. Alright, I'm going with D.
upvoted 0 times
Herschel
10 months ago
Exactly, that's why they can charge higher prices compared to more competitive markets.
upvoted 0 times
...
Mona
11 months ago
That's right, barriers to entry give monopolies more control over prices.
upvoted 0 times
...
Billye
11 months ago
Monopolies can prevent new competitors from entering the market.
upvoted 0 times
...
...
Mauricio
12 months ago
Hmm, I'm not so sure. What if the monopoly has to spend a ton on R&D to stay ahead? Wouldn't that justify the higher prices? Just a thought.
upvoted 0 times
Novella
10 months ago
Hmm, I'm not so sure. What if the monopoly has to spend a ton on R&D to stay ahead? Wouldn't that justify the higher prices? Just a thought.
upvoted 0 times
...
Eura
10 months ago
C) They have barriers to entry that stop customers going to new markets
upvoted 0 times
...
Linette
10 months ago
B) They must recover their higher research and development expenditures
upvoted 0 times
...
Staci
10 months ago
A) They can increase profits by reducing output to force prices higher
upvoted 0 times
...
Ressie
10 months ago
D) They have barriers to entry that stop customers going to new markets
upvoted 0 times
...
Roosevelt
10 months ago
C) They can increase profits by reducing output to force prices higher
upvoted 0 times
...
Marci
11 months ago
B) They must recover their higher research and development expenditures
upvoted 0 times
...
Emelda
11 months ago
A) They are more likely to suffer from diseconomies of scale
upvoted 0 times
...
...
Cory
12 months ago
Option C is the correct answer. Monopolies reduce output to drive up prices and maximize profits. It's all about that bottom line.
upvoted 0 times
...
Bobbie
12 months ago
But isn't it unfair to consumers who have no choice but to pay those high prices?
upvoted 0 times
...
Oliva
12 months ago
That's true, they can control the market and set prices as they please.
upvoted 0 times
...
Irving
12 months ago
Monopolies can charge higher prices because they have no competition.
upvoted 0 times
...
William
12 months ago
Monopolies can charge higher prices because they have no competition to keep them in check. Basic economics, really.
upvoted 0 times
Micah
11 months ago
Yeah, they don't have to worry about losing customers to competitors.
upvoted 0 times
...
Micah
11 months ago
That's true, monopolies can pretty much set their prices however they want.
upvoted 0 times
...
...
Alpha
1 year ago
But they also have barriers to entry that prevent new competitors from entering the market.
upvoted 0 times
...
Kimbery
1 year ago
That's true, they can increase profits by reducing output and forcing prices higher.
upvoted 0 times
...
Shawana
1 year ago
Monopolies can charge higher prices because they have no competition.
upvoted 0 times
...

Save Cancel