Refer to the information provided.Jack, the sole owner of all the wells in town, decides to move to a more suitable climate, so he sells the wells to a couple of dozen different town residents.Which of the following is likely to occur?
A)the price of water is likely to fall
B)the individual water sellers will not have as much pricing power as Jack had
C)the town residents will likely be better off
D)all of the above will occur

Question

Quizplus · Accepted Answer

When a monopoly (Jack owning all the wells) is broken up into several smaller competitors, prices typically decrease due to competition, individual sellers have less control over prices compared to a single owner, and consumers (town residents) benefit from lower prices and potentially better services.

Refer to the Information Provided