If a Perfectly Competitive Market Becomes a Monopoly and the Costs

question 174

Multiple Choice

If a perfectly competitive market becomes a monopoly and the costs do not change, which of the following allocations 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.

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