If an Insurmountable Barrier to Entry Is Lifted and a Market

question 9

Multiple Choice

If an insurmountable barrier to entry is lifted and a market that was once dominated by a monopolist is now perfectly competitive, the market equilibrium price will be _______ and the market equilibrium quantity will be _______.

• A)lower; higher
• B)higher; lower
• C)lower; lower
• D)higher; higher

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Definitions:

Hudson Valley

A geographical area in New York State known for its rich history, beautiful landscapes, and as a significant site during the American Revolutionary War.

Land Riots

Public disturbances or protests specifically related to issues of land ownership, access, or use.

Committees of Observation

Local groups established in the American colonies in the lead-up to the American Revolution, which monitored compliance with nonimportation agreements and encouraged American resistance to the British.

Popular Support

The level of approval or favorability from the general public towards a person, policy, or initiative.