Suppose a Perfectly Competitive Industry Is Suddenly Transformed into a Monopoly

question 191

Multiple Choice

Suppose a perfectly competitive industry is suddenly transformed into a monopoly industry.We can assume that monopoly output will be _____ than will the competitive output and that _____.

• A)higher;deadweight loss will emerge
• B)lower;consumer surplus will increase
• C)lower;deadweight loss will emerge
• D)higher;consumer surplus will decrease

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