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.

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Definitions:

Consolidated Financial Statements

Financial statements that show the financial position and results of operations for a parent company and its subsidiaries as one economic entity.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within a business's normal operating cycle if longer.

Acquisition Cost

The total cost incurred to acquire an asset, including purchase price and all other costs necessary to bring the asset to a condition ready for its intended use.

Consolidated Financial Statements

Combined reporting of the financial statements of a parent company and its subsidiaries as if they were a single entity.