Assume a hypothetical case where an industry begins as perfectly competitive

Assume a hypothetical case where an industry begins

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77) Assume a hypothetical case where an industry begins as perfectly competitive and then becomes amonopoly. As a result of this change A) Consumer surplus will be smaller and producer surplus will be greater. There will be a netincrease in economic surplus.B) Price will be higher, output will be lower and the deadweight loss will be eliminated.C) Consumer surplus will be smaller, producer surplus will be greater and there will be areduction in economic efficiency.D) Price will be higher, consumer surplus will be greater and output will be greater.Answer: C77)Diff: 2Page Ref: 500-501/500-501Topic: Monopoly and Economic EfficiencyLearning Outcome: Micro 7: Discuss the effects of consumer and producer surpluses in a marketAACSB: Reflective Thinking 78) The most profitable price for a monopolist is 78)Diff: 1Page Ref: 499/499Topic: Profit MaximizationLearning Outcome: Micro 14: Discuss production and pricing decisions within monopolies and how publicpolicies affect monopoliesAACSB: Reflective Thinking 26
79) Which of the following statements is true? 79)Diff: 2Page Ref: 500-501/500-501Topic: Monopoly and Economic EfficiencyLearning Outcome: Micro 14: Discuss production and pricing decisions within monopolies and how publicpolicies affect monopoliesAACSB: Reflective Thinking Figure 15 -5Figure 15-5 shows the cost and demand curves for a monopolist.

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