The Following Questions Refer to the graph below.
-If this industry starts as perfectly competitive and then becomes a monopoly,market price will change from

Question

The Following Questions Refer to the graph below. 
-If this industry starts as perfectly competitive and then becomes a monopoly,market price will change from

Quizplus · Accepted Answer

In a perfectly competitive market, firms are price takers and produce at the point where marginal cost equals price. When the industry becomes a monopoly, the single firm has market power and can set a price above marginal cost. This will lead to a higher price and lower output.

The Following Questions Refer to the Graph Below