Refer to the Graph Shown

question 229

Multiple Choice

Refer to the graph shown. If a competitive industry producing hamburgers is taken over by a pure monopoly firm that maximizes profit:

• A) output will remain at 100 but price will rise to $6.
• B) price will remain at $6 but output will fall by 100.
• C) price will remain at $4 but output will fall by 100.
• D) price will rise to $6 and output will fall by 100.