Assuming No Economies of Scale and Identical Costs,if the Firms

question 65

Multiple Choice

Assuming no economies of scale and identical costs,if the firms in a purely competitive industry were replaced by a profit-maximizing monopolist,the likely result would be:

• A) an increase in both price and output.
• B) unchanged price and reduced output.
• C) an increase in price and unchanged output.
• D) an increase in price and reduced output.

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Definitions:

World Bank

A global financial organization offering loans and grants to low-income country governments to support capital projects.

Relative Poverty

A condition where individuals or groups have significantly less income or resources compared to the average in their society.

Absolute Poverty

A condition where individuals or families are unable to meet their basic needs for survival, such as food, shelter, and healthcare.

Global Poverty

The condition of lacking necessary financial resources and basic needs on a worldwide scale, affecting billions of individuals in various countries, especially in developing regions.