If a monopoly market structure is transformed to a perfectly competitive one, price will _____ and output will _____.
A) fall; fall
B) fall; increase
C) increase; increase
D) increase; fall

Question

Quizplus · Accepted Answer

In a perfectly competitive market, prices tend to be lower due to increased competition, and output increases as firms produce at a more efficient scale compared to a monopoly.

If a Monopoly Market Structure Is Transformed to a Perfectly