The following question are based on the following diagram of a monopolist:

-If a perfectly competitive,constant-cost industry is monopolized,the
A) number of firms in the industry will rise.
B) industry price and output will remain unchanged.
C) industry price and output will rise.
D) price will fall and industry output will rise.
E) price will rise and industry output will fall.

Question

The following question are based on the following diagram of a monopolist:
 
-If a perfectly competitive,constant-cost industry is monopolized,the
A) number of firms in the industry will rise. 
B) industry price and output will remain unchanged. 
C) industry price and output will rise. 
D) price will fall and industry output will rise. 
E) price will rise and industry output will fall.

Quizplus · Accepted Answer

When a perfectly competitive industry is monopolized, the monopolist will reduce output to increase prices, leading to higher prices and lower output compared to the competitive outcome.

The Following Question Are Based on the Following Diagram of a Monopolist