If a Perfectly Competitive Industry Becomes a Monopoly and the Costs

question 127

Multiple Choice

If a perfectly competitive industry becomes a monopoly and the costs do not change,which of the following allocation of costs and benefits applies?

• A) The producer benefits, but consumers and society are harmed.
• B) The producer and society are harmed, but consumers benefit.
• C) The producer and society benefit, but consumers are harmed.
• D) The producer is harmed, but consumers and society benefit.
• E) The producer, consumers, and society all benefit.

---

Definitions:

Internal Revenue Service

The Internal Revenue Service (IRS) is the agency of the U.S. government tasked with collecting taxes and enforcing the laws related to taxes.

Government in the Sunshine Act

A U.S. law aimed at ensuring that agencies conduct their meetings in public, promoting transparency.

Public Observation

The act of watching, monitoring, or scrutinizing activities, processes, or events by the general public, often for oversight or interest purposes.

Administrative Inspections

Routine examinations or checks conducted by governmental agencies to ensure compliance with laws, regulations, and standards.