If a monopoly suddenly became a perfectly competitive industry,
Equilibrium output would _________, and the equilibrium price would
_________.
A)increase; increase
B)decrease; decrease
C)increase; decrease
D)decrease; increase

Question

Quizplus · Accepted Answer

In a perfectly competitive market, firms produce at a level where price equals marginal cost, leading to higher output and lower prices compared to a monopoly, which restricts output to raise prices.

If a Monopoly Suddenly Became a Perfectly Competitive Industry