Answer to Question #276552 in Microeconomics for Ntando

Question

Question 13

If a monopoly market were to be replaced with a perfectly competitive market for the same

product and with the same cost structure, we would expect:

A. prices to increase, output to increase and efficiency to increase.

B. prices to increase, output to decrease and efficiency to decrease.

C. prices to decrease, output to increase and efficiency to increase.

D. prices to decrease, output to decrease and efficiency to decrease.

E. prices to remain unchanged, output to decrease and efficiency to increase.

Answer 1

C. prices to decrease, output to increase and efficiency to increase.