If an insurmountable barrier to entry is lifted and a market that was once dominated by a monopolist is now perfectly competitive, the market equilibrium price will be _______ and the market equilibrium quantity will be _______.

Question

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When a monopolist becomes faced with perfect competition, the barrier to entry that previously existed is removed, leading to a greater number of firms in the market competing for business. The increased competition leads to lower prices as firms attempt to undercut one another to gain a larger market share. Additionally, the increased competition leads to a higher quantity of goods being produced as firms strive to meet the demand of consumers. Therefore, the market equilibrium price will be lower and the market equilibrium quantity will be higher.

If an Insurmountable Barrier to Entry Is Lifted and a Market