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.

---

Definitions:

Foreign Policy Goals

The strategic objectives that a country aims to achieve in its relations and interactions with other nations, encompassing diplomacy, economic interests, and security.

Political Sociology

The study of the relationship between society and politics, including the formation of policies, movements, power, and the state's role.

Social Structures

Stable patterns of social relations.

State Institutions

Organizations or structures established by the government to perform functions and duties for the welfare and governance of the society.