It is possible that a multi-product monopolist will reduce the quality

It is possible that a multi-product monopolist will reduce the quality of a product below what its users prefer in order to make more profit.

Indicate whether the statement is true or false

ANSWER

T If the products are substitutes and buyers of a high-quality one will pay a high price for it, the monopolist may want to reduce the quality of the other product so it is less attractive as a substitute for the high-priced product.