Which of the following describes a limitation of monopolistic pricing according to economic principles?

Monopolistic pricing is characterized by a single firm dominating a market, which gives it considerable power to set prices. This power can lead to higher prices for goods and services because the monopolist can control supply and demand without the pressure of competition. In a competitive market, various firms strive to attract consumers by offering lower prices or improved products. However, with a monopoly, the absence of competition allows the monopolist to raise prices above the equilibrium level that would prevail in a competitive market. Consequently, consumers may face limited options and have to pay more for goods and services, highlighting a key limitation of monopolistic pricing.

The other options do not accurately describe limitations of monopolistic pricing. For instance, monopolistic practices often lead to less consumer choice rather than supporting it. Additionally, monopolies usually discourage new competitors since they possess substantial resources and market influence that make entry barriers high. Lastly, while monopolies might improve product quality to maintain their customer base, this is not an inherent limitation of their pricing strategy; instead, it may be a strategic choice rather than a direct consequence of monopolistic pricing itself.