Assume a Hypothetical Case Where an Industry Begins as Perfectly

question 139

Multiple Choice

Assume a hypothetical case where an industry begins as perfectly competitive and then becomes a monopoly.As a result of this change

• A)price will be higher, output will be lower, and the deadweight loss will be eliminated.
• B)consumer surplus will be smaller, producer surplus will be greater, and there will be a reduction in economic efficiency.
• C)price will be higher, consumer surplus will be greater, and output will be greater.
• D)consumer surplus will be smaller and producer surplus will be greater. There will be a net increase in economic surplus.

---

Definitions:

Principal

The amount of money originally invested or loaned, upon which interest and other charges are calculated.

Unauthorized Act

An action taken by an individual or entity without proper authority or permission, potentially leading to legal consequences.

Agent

An individual or entity authorized to act on behalf of another, often in business or legal matters.

Implied Authority

The power assumed to be granted to an agent as part of their role, even though it is not explicitly stated in their contract or agreement.