Refer to the graph shown. Suppose the industry is currently perfectly competitive but then is taken over by a monopolist. Assuming that the monopolist maximizes profit:

A. the price of computers will decrease from $600 to $400 and the quantity demanded will rise from 200 to 400.
B. the price of computers will increase from $400 to $600 and the quantity demanded will fall from 400 to 200.
C. the price of computers will increase from $400 to $600 but there will be no change in quantity demanded.
D. there will be no effect on the price of computers.


Answer: B

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