Assume a Hypothetical Case Where an Industry Begins as Perfectly

question 245

Multiple Choice

Assume a hypothetical case where an industry begins as perfectly competitive 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.

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Definitions:

Plasmodesmata

Microscopic channels that traverse the cell walls of plant cells and some algal cells, facilitating intercellular communication and transport.

Desmotubule

A central rod-like structure of desmosomes, which are special cell-cell adhesion structures, facilitating cellular communication and cohesion in multicellular organisms.

Smooth ER

A type of endoplasmic reticulum without ribosomes, involved in lipid synthesis, detoxification, and calcium ion storage.

Signal Transduction Receptors

Proteins located on cell surfaces or within cells that bind to specific molecules and trigger a response, often leading to a change in cell function.