Assuming no economies of scale and identical costs,if the firms in a purely competitive industry were replaced by a profit-maximizing monopolist,the likely result would be:

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Quizplus · Accepted Answer

A profit-maximizing monopolist would have the ability to raise prices due to lack of competition, but reducing output would also be necessary to maintain profit margins since there are no economies of scale. Therefore, the likely result would be an increase in price and a reduction in output.

Assuming No Economies of Scale and Identical Costs,if the Firms