Economic question plz help!!! urgent?

Question

TRUE OR FALSE: “The monopolist is the quintessential capitalist: exploiting consumers and employees while always turning a tidy profit.” Explain.

Answer 1

FALSE, because a monopolist exploit consumers, but do not necessary exploit employees!!

Answer 2

False. A capitalist does not exploit, but serves the public good through self-interest.

In theory.

But this is the answer your teacher is looking for.

Answer 3

Wow! This isn't exactly a one word answer...

I would break it down like this though:

1)Does the quintessential capitalist exploit customers?

a) yes, he is out to make profit at all costs

b) no, capitalism is merely a belief in market systems which should actually increase consumer welfare. A capitalist ideologist may favour perfect competition. (i.e. a monopolitist is NOT the quintessential capitalist)

2)Does a monopolist exploit customers?

a) yes, he increases his producer surplus at the expense of consumer surplus

b) what about natural monopolies, in these circumstances goods would not be produced without a monopoly. Monopolies can exhibit economies of scale, reducing costs of production and thereby reducing price to the consumer.

c) a monopoly may not aim to maximise profits. They can have other aims.

Edit:

In reference to the answer below a monopolist (/monopsonist) employer acts in much the same way as the theoretical monopoly firm - lowering wages and employment.