Assume a Hypothetical Case Where an Industry Begins as Perfect

question 115

Multiple Choice

Assume a hypothetical case where an industry begins as perfect competition and then becomes a monopoly.Which of the following statements comparing the conditions in the industry under both market structures is true?

• A)A monopoly will produce more and charge a higher price than would a perfectly competitive industry producing the same good.
• B)A monopoly will produce more and advertise more than would a perfectly competitive industry producing the same good.
• C)A monopoly will produce less and charge a higher price than would a perfectly competitive industry producing the same good.
• D)A monopoly will produce less and charge a lower price than would a perfectly competitive industry producing the same good.

Interpret the impacts of price changes on consumer surplus.

Explain the significance of marginal utility in utility-maximizing behavior.

Grasp the relationship between changes in prices and the quantity demanded/supplied as per the law of demand.

Understand the economic consequences of the 1929 stock market crash and its not being the sole cause of the Great Depression.

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Definitions:

Devise

Real property that is left in a will. In states that have adopted the Uniform Probate Code, the term refers to both real and personal property.

Defense of Marriage Act

A U.S. federal law enacted in 1996 that defined marriage as a union between one man and one woman for federal and inter-state recognition purposes, partially struck down in 2013.

Constitutionality

The quality or condition of being in accordance with a political constitution, especially pertaining to the legality of actions or statutes.

Uniform Probate Code

A set of laws intended to harmonize and simplify the process of probating wills and administering estates across the states that adopt it.