Assume That an Industry Is Currently a Monopoly

question 85

Multiple Choice

Assume that an industry is currently a monopoly.If the government breaks this monopoly up into a large number of small,perfectly competitive firms,which of the following will occur?

• A)Both price and industry output will increase.
• B)Price will fall and industry output will increase.
• C)Price will increase and industry output will decrease.
• D)Both price and industry output will decrease.

---

Definitions:

Erythrocytes

Red blood cells, which carry oxygen from the lungs to the body's tissues and return carbon dioxide from the tissues back to the lungs.

Osteoblasts

Cells that are responsible for bone formation by synthesizing the bone matrix and mineralizing it.

Chondroblasts

Cells that secrete cartilage matrix, leading to the formation of cartilage tissue.

Striated Muscle

Muscle tissue that features repeating sarcomeres, visible under a light microscope as striations.