Assume someone organizes all farms in the nation into a single-price monopoly.As a result,the amount of food produced
A) remains constant.
B) decreases.
C) increases.
D) might increase or decrease depending on whether the demand for food is elastic or inelastic.
E) might increase or decrease depending on whether the monopoly's marginal revenue curve lies below or above its demand curve.

Question

Quizplus · Accepted Answer

With a single-price monopoly, the producer has complete control over the price, and as a result, they will produce less than the efficient level of output. Therefore, the amount of food produced will decrease.

Assume Someone Organizes All Farms in the Nation into a Single-Price