If a monopoly market were to be transformed into a competitive market, the result would be that
A)market output would increase.
B)the market would be efficient, once the market reached the competitive output.
C)the deadweight loss from the monopoly would be eliminated.
D)All of the above would be true.

Question

​If a monopoly market were to be transformed into a competitive market, the result would be that
A)​market output would increase.
B)​the market would be efficient, once the market reached the competitive output.
C)​the deadweight loss from the monopoly would be eliminated.
D)​All of the above would be true.

Quizplus · Accepted Answer

In a competitive market, firms are forced to produce at the lowest possible cost in order to remain profitable. This leads to an increase in market output, as firms are producing more efficiently. Additionally, deadweight loss is eliminated in a competitive market as prices are lower and output is higher. Therefore, all of the options mentioned in the question would be true if a monopoly market were transformed into a competitive market.

​If a Monopoly Market Were to Be Transformed into a Competitive

If a Monopoly Market Were to Be Transformed into a Competitive