If technology is fixed,monopolization of a competitive industry will lead to
A)lower prices and higher output
B)higher prices and the same level of output
C)lower output and the same level of price
D)higher prices and lower output
E)higher output and higher prices

Question

Quizplus · Accepted Answer

If technology is fixed, monopolization of a competitive industry will allow the dominant firm to decrease output and raise prices, resulting in less quantity available at a higher price. This is because the monopolist has no fear of losing market share and can exercise their market power to maximize profits.

If Technology Is Fixed,monopolization of a Competitive Industry Will Lead