If a monopolized industry should become purely competitive without any change in cost conditions:
A. both price and quantity produced will decrease.
B. both price and quantity produced will increase.
C. price will increase and quantity produced will decrease.
D. price will decrease and quantity produced will increase.
Answer: D
Economics
You might also like to view...
A price ceiling set below the market clearing price will tend to cause which of the following?
A) a surplus B) a shortage C) an increase in demand D) a reduction in supply
Economics
The supply-side shocks that affected the United States in 1973 and 1979 were the result of
A. government tax policies. B. union wage demands. C. OPEC policies regarding the availability and price of crude oil. D. periods of stagflation in which the United States had achieved low or negative rates of growth in real GDP.
Economics