';Monopolies always charge the highest possible price'; True, False or Uncertain?

I think its false, but i can't explain why';Monopolies always charge the highest possible price'; True, False or Uncertain?
Any premise with the word always in it is always false.

















Think about that for a minute.';Monopolies always charge the highest possible price'; True, False or Uncertain?
I think its true, there is no competition to fight with and if nobody else offers the product or service, they could pretty much charge whatever they darn well please.
Monopolies are businesses where one person or a group of people own all or most of a certain product or land.





Well, the word ';always'; is a hard word to deal with because almost never is something always. I don't know what terms your teacher is on and how far she is taking ';always';. However, I would have to say true, because monopolies usually control all of one product and therefore they have no competition and don't need to worry about competeting with another company about who sells the most. They have no competition and can therefore offer a price as high or as low as they want without worrying about losing business.The monopolies know that the people depend on their product and will have to buy it. So, if they make the price low (low enough so that the monopolies can have an income), they are just being nice to the people because they are getting a lower price. If they make the price really high, some people will not have enough money, but they will need it because no one else sells that certain product and will either have to save up for it or find a way to purchase that item. So now, with the prices very high, the monopolies are still getting their normal income because people need that product and have to buy it from them because there is nowhere else to buy it from, except the monopolies are getting even more money because they are overcharging. They are just getting more than enough money through an unfair process (it's unfair for the people who have a very low wage because it is very hard for them to afford it and they can't get it anywhere else). There is no point for them to charge a low price because then they get less money (still enough, but less than they could be getting) and are just more nice to the people by accepting that the people have a low wage and won't need to struggle that hard in order to purchase it. However, monopolies usually didn't think like that- it was usually about the money.





So I think true.
I think it would be true. If you're not competing, you can set your own price.
I think it's false or uncertain, you can argue that although a monopoly doesn't have competition if it sets its prices too high it could have potential competiton, i.e. other companies would come along and offer the product more cheaply.


http://en.wikipedia.org/wiki/Monopoly
I would say Uncertain. A monopoly just means that the industry or company operates without reasonable competition, and they ';monopolize'; the industry. It can be argued that they in effect charge high prices, but that is why we have laws against monopolies.