Assume a Hypothetical Case Where an Industry Begins as Perfectly

question 139

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:

Strategic Goal

A long-term, broad aim that an organization seeks to achieve in order to realize its mission and vision.

Growth Targets

Specific objectives set by a business or organization aiming for a certain level of expansion or development within a given timeframe.

Incentive Pay

Financial reward given to employees beyond their regular salary, often based on performance criteria, to motivate and encourage higher productivity.

Downside Risk

The potential for loss or negative outcome in an investment or business situation.