Which of the Following Would Be the Most Likely Outcome

question 248

Multiple Choice

Which of the following would be the most likely outcome if all perfectly competitive firms in a product market join together to form a monopoly?

• A) Both the rate of output and the quantity of labor input employed will decrease.
• B) Both the rate of output and the quantity of labor input employed will increase.
• C) The rate of output in the market will increase but the quantity of labor input will decrease.
• D) The rate of output in the market will decrease but the quantity of labor input will increase.

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Definitions:

Intentional

Done with purpose or deliberation; not accidental or unintentional.

Outrageous

Describes actions or behaviors that are shocking, extreme, and exceed the bounds of decency in a societal context.

Law of Torts

A branch of civil law that deals with legal liabilities, obligations, and damages arising from wrongful acts not involving contracts.

Statutory Law

Law enacted by a legislative body, such as a Congress or Parliament, that specifies and mandates behaviors, procedures, and consequences within its jurisdiction.