If a perfectly competitive industry suddenly became a monopolist, equilibrium output would _________, and the equilibrium price would _________.
a. increase; increase
b. decrease; decrease
c. increase; decrease
d. decrease; increase
Ans: d. decrease; increase
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One barrier to entry into a monopoly market is:
A. the ownership of a key resource or input. B. too many competitors already in the market. C. high input costs. D. few buyers.
A change in demand cannot be caused by a change in
a. tastes b. population c. the prices of other goods d. expectations of future prices e. the price of the good itself
Imagine that in 2015 the economy is in long-run equilibrium. Then stock prices rise more than expected and stay high for some time. Refer to Stock Market Boom 2015. Which curve shifts and in which direction?
a. aggregate demand shifts right b. aggregate supply shifts left. c. aggregate supply shifts right d. aggregate demand shifts left
From 1970 to 1997, the federal government ran a _____ and the state and local governments combined ran a ____.
A. deficit; deficit B. surplus; surplus C. surplus; deficit D. deficit; surplus