Suppose a Market Is Initially Perfectly Competitive with Many Firms

question 177

Multiple Choice

Suppose a market is initially perfectly competitive with many firms selling an identical product. Over time, however, suppose the merging of firms results in the market being served by only three or four firms selling this same product. As a result, we would expect

• A)an increase in market output and an increase in the price of the product.
• B)an increase in market output and an decrease in the price of the product.
• C)a decrease in market output and an increase in the price of the product.
• D)a decrease in market output and a decrease in the price of the product.

---

Definitions:

Protestants

Members of any of the Western Christian churches that are separate from the Roman Catholic Church and follow the principles of the Reformation.

Government Control

The extent and methods through which a governmental body regulates or influences societal behavior, economic activities, and public policies.

Margaret Fuller

An American journalist, critic, and women's rights advocate associated with the transcendentalist movement, known for her book "Woman in the Nineteenth Century".

Reform Movements

Movements aimed at making changes in societal norms, laws, or policies in order to address issues deemed unfair, unjust, or harmful.