If pizza used to be produced in a perfectly competitive market, and now the pizza market has become a monopoly, we can expect:
A) less pizza to be sold at a higher price.
B) more pizza to be sold at a higher price.
C) less pizza to be sold at a lower price.
D) more pizza to be sold at a lower price.
E) the same amount of pizza to be sold at the same price.

Question

Quizplus · Accepted Answer

When a market becomes a monopoly, the monopolist has the ability to control the price and output of the product. In this case, the monopolist in the pizza market will reduce output and raise the price, resulting in less pizza being sold at a higher price.

If Pizza Used to Be Produced in a Perfectly Competitive