The Following Question Are Based on the Following Diagram of a Monopolist

question 4

Multiple Choice

The following question are based on the following diagram of a monopolist:

-If a perfectly competitive,constant-cost industry is monopolized,the

• A) number of firms in the industry will rise.
• B) industry price and output will remain unchanged.
• C) industry price and output will rise.
• D) price will fall and industry output will rise.
• E) price will rise and industry output will fall.

---

Definitions:

Decimal Equivalent

A decimal number that represents the same value as a given fraction or percentage.

Percent Equivalent

The fractional amount expressed as a part of one hundred.

Compound Interest

This form of interest computation involves calculating interest on both the initial principal amount and any interest that has accrued in the past periods on a loan or deposit.

Percent Equivalent

The numeric representation of a ratio or fraction as a part of 100.