Which of the Following Would Be the Most Likely Outcome

question 248

Multiple Choice

Which of the following would be the most likely outcome if all perfectly competitive firms in a product market join together to form a monopoly?

• A) Both the rate of output and the quantity of labor input employed will decrease.
• B) Both the rate of output and the quantity of labor input employed will increase.
• C) The rate of output in the market will increase but the quantity of labor input will decrease.
• D) The rate of output in the market will decrease but the quantity of labor input will increase.

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Definitions:

Cash Payments

Transactions that involve the outflow of cash to settle obligations or purchase items.

Ski Jackets

A type of outerwear designed for protecting the body from cold temperatures and snow, especially during skiing.

Budgeted Cost

An estimated expense for various activities or projects, predetermined during the budgeting process.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company.