{"id":56762,"date":"2024-04-16T00:50:16","date_gmt":"2024-04-16T00:50:16","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=56762"},"modified":"2024-04-16T00:50:16","modified_gmt":"2024-04-16T00:50:16","slug":"which-of-the-following-statements-are-true-according-to-prof-schumpeter-about-a-monopolist-1-monopolies-are-inefficient-2-monopoly-profits-acts-as-an-incentive-for-innovation-3-ar-is-equal-to-m","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-statements-are-true-according-to-prof-schumpeter-about-a-monopolist-1-monopolies-are-inefficient-2-monopoly-profits-acts-as-an-incentive-for-innovation-3-ar-is-equal-to-m\/","title":{"rendered":"Which of the following statements are true according to Prof. Schumpeter about a monopolist? 1. Monopolies are inefficient. 2. Monopoly profits acts as an incentive for innovation. 3. AR is equal to MR. Select the correct answer"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a97e1ec265b0\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"false\">\r\n                    Both 1 and 2                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"true\">\r\n                    Both 2 and 3                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    Only 2                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    Only 1                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is: <strong>Both 1 and 2<\/strong>.<\/p>\n<p>According to Prof. Schumpeter, monopolies are inefficient because they produce less output and charge higher prices than a perfectly competitive market would. However, he also argued that monopoly profits act as an incentive for innovation, as firms compete to be the first to introduce new products and services.<\/p>\n<p>Option 1 is true because monopolies have a great deal of market power, which allows them to charge higher prices and produce less output than a perfectly competitive market would. This is because consumers have no other choice but to buy from the monopolist, and the monopolist can therefore charge whatever price it wants. As a result, monopolies are often seen as being inefficient.<\/p>\n<p>Option 2 is also true because monopoly profits can act as an incentive for innovation. This is because firms that are able to innovate and introduce new products and services can earn monopoly profits for a period of time before other firms are able to copy their innovations. This gives firms an incentive to invest in research and development, which can lead to new and better products and services being developed.<\/p>\n<p>Option 3 is false because AR is not equal to MR for a monopolist. This is because a monopolist faces a downward-sloping demand curve, which means that it can sell <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div> 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> more units of its product by lowering its price. As a result, the marginal revenue curve for a monopolist lies below the demand curve.<\/p>\n<p>In conclusion, both options 1 and 2 are true according to Prof. Schumpeter about a monopolist.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Join Our Telegram Channel Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Which of the following statements are true according to Prof. Schumpeter about a monopolist? 1. Monopolies are inefficient. 2. Monopoly profits acts as an incentive for innovation. 3. AR is equal to MR. Select the correct answer<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-statements-are-true-according-to-prof-schumpeter-about-a-monopolist-1-monopolies-are-inefficient-2-monopoly-profits-acts-as-an-incentive-for-innovation-3-ar-is-equal-to-m\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Which of the following statements are true according to Prof. Schumpeter about a monopolist? 1. Monopolies are inefficient. 2. Monopoly profits acts as an incentive for innovation. 3. AR is equal to MR. Select the correct answer\" \/>\n<meta property=\"og:description\" content=\"Join Our Telegram Channel Subscribe on YouTube\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-statements-are-true-according-to-prof-schumpeter-about-a-monopolist-1-monopolies-are-inefficient-2-monopoly-profits-acts-as-an-incentive-for-innovation-3-ar-is-equal-to-m\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-16T00:50:16+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Which of the following statements are true according to Prof. Schumpeter about a monopolist? 1. Monopolies are inefficient. 2. Monopoly profits acts as an incentive for innovation. 3. AR is equal to MR. Select the correct answer","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-statements-are-true-according-to-prof-schumpeter-about-a-monopolist-1-monopolies-are-inefficient-2-monopoly-profits-acts-as-an-incentive-for-innovation-3-ar-is-equal-to-m\/","og_locale":"en_US","og_type":"article","og_title":"Which of the following statements are true according to Prof. Schumpeter about a monopolist? 1. Monopolies are inefficient. 2. Monopoly profits acts as an incentive for innovation. 3. AR is equal to MR. Select the correct answer","og_description":"Join Our Telegram Channel Subscribe on YouTube","og_url":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-statements-are-true-according-to-prof-schumpeter-about-a-monopolist-1-monopolies-are-inefficient-2-monopoly-profits-acts-as-an-incentive-for-innovation-3-ar-is-equal-to-m\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-16T00:50:16+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-statements-are-true-according-to-prof-schumpeter-about-a-monopolist-1-monopolies-are-inefficient-2-monopoly-profits-acts-as-an-incentive-for-innovation-3-ar-is-equal-to-m\/","url":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-statements-are-true-according-to-prof-schumpeter-about-a-monopolist-1-monopolies-are-inefficient-2-monopoly-profits-acts-as-an-incentive-for-innovation-3-ar-is-equal-to-m\/","name":"Which of the following statements are true according to Prof. Schumpeter about a monopolist? 1. Monopolies are inefficient. 2. Monopoly profits acts as an incentive for innovation. 3. AR is equal to MR. Select the correct answer","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2024-04-16T00:50:16+00:00","dateModified":"2024-04-16T00:50:16+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-statements-are-true-according-to-prof-schumpeter-about-a-monopolist-1-monopolies-are-inefficient-2-monopoly-profits-acts-as-an-incentive-for-innovation-3-ar-is-equal-to-m\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-statements-are-true-according-to-prof-schumpeter-about-a-monopolist-1-monopolies-are-inefficient-2-monopoly-profits-acts-as-an-incentive-for-innovation-3-ar-is-equal-to-m\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/which-of-the-following-statements-are-true-according-to-prof-schumpeter-about-a-monopolist-1-monopolies-are-inefficient-2-monopoly-profits-acts-as-an-incentive-for-innovation-3-ar-is-equal-to-m\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"mcq","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/"},{"@type":"ListItem","position":3,"name":"Economics","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/economics\/"},{"@type":"ListItem","position":4,"name":"Which of the following statements are true according to Prof. Schumpeter about a monopolist? 1. Monopolies are inefficient. 2. Monopoly profits acts as an incentive for innovation. 3. AR is equal to MR. Select the correct answer"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/d97f17072bfa490596c8f78363955d55?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/d97f17072bfa490596c8f78363955d55?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/56762"}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=56762"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/56762\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=56762"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=56762"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=56762"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}