Suppose a Market Is Initially Perfectly Competitive with Many Firms

question 177

Multiple Choice

Suppose a market is initially perfectly competitive with many firms selling an identical product. Over time, however, suppose the merging of firms results in the market being served by only three or four firms selling this same product. As a result, we would expect

• A)an increase in market output and an increase in the price of the product.
• B)an increase in market output and an decrease in the price of the product.
• C)a decrease in market output and an increase in the price of the product.
• D)a decrease in market output and a decrease in the price of the product.

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Definitions:

Pleural Cavity

The slender space filled with fluid located between the dual layers of the pleura that encase each lung.

Respiratory System

The body system consisting of organs and structures responsible for the intake of oxygen and the expulsion of carbon dioxide.

Lungs

Respiratory organs in the chest that intake oxygen and expel carbon dioxide as part of the breathing process.

Respiration

The process by which living organisms exchange oxygen and carbon dioxide, crucial for energy production and metabolic functions.