If a market changes from perfectly competitive to monopolistic,output will increase and the price will decrease,ceteris paribus.

Question

Quizplus · Accepted Answer

When a market changes from perfectly competitive to monopolistic, the output will decrease and the price will increase, ceteris paribus. This is because monopolies have the ability to control the market and set higher prices, while restricting output to maximize profits. In contrast, in a perfectly competitive market, firms compete with each other, leading to lower prices and higher output levels.

If a Market Changes from Perfectly Competitive to Monopolistic,output Will