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Exhibit 8-7 -According to Exhibit 8-7,if a Firm Buys All the Other

Question 112

Multiple Choice

Exhibit 8-7
Exhibit 8-7 -According to Exhibit 8-7,if a firm buys all the other firms in this market and becomes a monopolist,we would expect: A) a more efficient allocation of resources, as P = MC now. B) the price to fall and output to rise to (P<sub>1</sub>, Q<sub>2</sub>) . C) the price to fall and output to decline to (P<sub>0</sub>, Q<sub>2</sub>) . D) the price to rise and output to fall to (P<sub>0</sub>, Q<sub>1</sub>) .
-According to Exhibit 8-7,if a firm buys all the other firms in this market and becomes a monopolist,we would expect:


A) a more efficient allocation of resources, as P = MC now.
B) the price to fall and output to rise to (P1, Q2) .
C) the price to fall and output to decline to (P0, Q2) .
D) the price to rise and output to fall to (P0, Q1) .

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