If a Perfectly Competitive Industry Is Monopolized, Consumer Surplus:​

question 88

Multiple Choice

If a perfectly competitive industry is monopolized, consumer surplus:​

• A)can be expected to decrease.
• B)usually remains constant.
• C)becomes equal to producer surplus.
• D)becomes double of producer surplus.
• E)increases from zero to a high value.

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Definitions:

Return On Investment

A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of multiple investments, calculated as a ratio or percentage of the return on an investment relative to its cost.

Net Operating Income

The net amount a business earns after subtracting operating costs, excluding taxes and interest expenses.

Margin

A financial metric reflecting the difference between a product's selling price and the cost to produce it, commonly expressed as a percentage of the selling price.

Investment Opportunity

A financial or business venture or asset that has the potential to yield returns or profits.