If a Perfectly Competitive Industry Becomes a Monopoly and the Costs

question 127

Multiple Choice

If a perfectly competitive industry becomes a monopoly and the costs do not change,which of the following allocation of costs and benefits applies?

• A) The producer benefits, but consumers and society are harmed.
• B) The producer and society are harmed, but consumers benefit.
• C) The producer and society benefit, but consumers are harmed.
• D) The producer is harmed, but consumers and society benefit.
• E) The producer, consumers, and society all benefit.

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Definitions:

Elevated

Refers to something being raised to a higher position or level.

Rabies

An acute viral disease of the nervous system of warm-blooded animals; usually transmitted by the bite of a rabid animal.

Depressed Fracture

A type of bone fracture where part of the bone is pushed inward, often seen in skull fractures.

Greenstick Fracture

An incomplete fracture, occurring in children.