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If Entry-Restricting Legal Barriers Effectively Organized the Funeral Home Industry

Question 184

Multiple Choice

If entry-restricting legal barriers effectively organized the funeral home industry of a large city into a monopoly cartel, economic theory indicates that, compared to the previously competitive situation,


A) the price of funeral services would decline, and output would increase.
B) both the price and output of funeral services would decline.
C) the price of funeral services would increase, and output would decline.
D) both the price and output of funeral services would increase.

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