Refer to the graph shown. If a competitive industry producing hamburgers is taken over by a pure monopoly firm that maximizes profit:
A) output will remain at 100 but price will rise to $6.
B) price will remain at $6 but output will fall by 100.
C) price will remain at $4 but output will fall by 100.
D) price will rise to $6 and output will fall by 100.

Question

Refer to the graph shown. If a competitive industry producing hamburgers is taken over by a pure monopoly firm that maximizes profit: 
A) output will remain at 100 but price will rise to $6. 
B) price will remain at $6 but output will fall by 100. 
C) price will remain at $4 but output will fall by 100. 
D) price will rise to $6 and output will fall by 100.

Quizplus · Accepted Answer

The Answer of Refer to the graph shown. If a competitive industry producing hamburgers is taken over by a pure monopoly firm that maximizes profit: 
A) output will remain at 100 but price will rise to $6. 
B) price will remain at $6 but output will fall by 100. 
C) price will remain at $4 but output will fall by 100. 
D) price will rise to $6 and output will fall by 100.

Refer to the Graph Shown