When a Competitive Market Becomes Controlled by a Monopoly,the Price

question 49

Multiple Choice

When a competitive market becomes controlled by a monopoly,the price ________ and the output ________.

• A) increases; stays the same
• B) increases; increases
• C) decreases; stays the same
• D) increases; decreases
• E) decreases; decreases

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold in the marketplace.

Return on Total Assets

This metric evaluates a company's efficiency in using its assets to generate profit, calculated by dividing net income by total assets.

Interest Expense

The cost incurred by an entity for borrowed funds, typically reported on the income statement.

Income Tax Rate

The percentage at which an individual or corporation is taxed on their income.