If a monopolized industry should become purely competitive without any change in cost conditions:

Question

Quizplus · Accepted Answer

In a monopolized industry, the monopolist has control over both price and quantity produced. If the industry becomes purely competitive, there will be many firms operating in the industry, and price will be determined by the market rather than the monopolist. This will drive down price, and since each firm will only produce a small share of the total output, the quantity produced will increase. Therefore, the correct answer is D - price will decrease, and quantity produced will increase.

If a Monopolized Industry Should Become Purely Competitive Without Any