In 2010 , the pizza market in Charleston, Illinois, was perfectly competitive. But almost overnight, one firm bought up all its competitors to become the monopoly in the Charleston pizza market. As a result,
A) less pizza was produced and price increased
B) more pizza was produced and price increased
C) less pizza was produced and price decreased
D) more pizza was produced and price decreased
E) quantity and price remained the same but profit increased

Question

Quizplus · Accepted Answer

When a firm becomes a monopoly, it typically reduces output to increase prices and maximize profits, leading to less pizza being produced and an increase in price.

In 2010 , the Pizza Market in Charleston, Illinois, Was