Assume a Hypothetical Case Where an Industry Begins as Perfectly

question 92

Multiple Choice

Assume a hypothetical case where an industry begins as perfectly competitive and then becomes a monopoly.As a result of this change

• A) Price will be higher, output will be lower and the deadweight loss will be eliminated.
• B) Consumer surplus will be smaller, producer surplus will be greater and there will be a reduction in economic efficiency.
• C) Price will be higher, consumer surplus will be greater and output will be greater.
• D) Consumer surplus will be smaller and producer surplus will be greater. There will be a net increase in economic surplus.

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Definitions:

Job Evaluations

The systematic process of determining the relative worth of jobs within an organization in order to establish a fair and equitable wage and salary structure.

Appeal Mechanisms

Formal processes within organizations that allow employees to contest decisions or policies that they feel negatively affect them.

Job Evaluation Process

A systematic method for determining the relative worth or value of a job in relation to other jobs within an organization, typically considering factors such as complexity, responsibilities, and qualifications.

Pay Equity

The concept of ensuring that employees are compensated equally for work of equal value regardless of gender, race, or other unrelated factors.