Which of the following is a result of a monopoly’s control over the market?

Monopoly power typically leads to decreased product variety for several reasons. When a single firm dominates the market, it has the ability to dictate the terms and types of products available. This often results in the firm producing a limited range of products that it believes will maximize its profits, rather than a wider variety that might better serve consumer preferences. Since consumers have fewer alternatives to choose from, they face a lack of options that would otherwise be available in a competitive market.

In contrast, competition generally encourages firms to diversify their offerings as they strive to attract customers. Lower consumer prices are often associated with competitive markets, where firms compete on price to gain market share, while monopolies do not have the same incentive, leading to potential higher prices. Similarly, innovation can be stifled in a monopoly because the lack of competition reduces the urgency to improve products or services continuously, unlike in competitive markets where firms innovate to gain an edge.