Narrbegin Exhibit 8.7
-According to Exhibit 8.7, if a firm buys all the other firms in this market and becomes a monopolist, we would expect:

Question

Narrbegin Exhibit 8.7  
-According to Exhibit 8.7, if a firm buys all the other firms in this market and becomes a monopolist, we would expect:

Quizplus · Accepted Answer

When a firm becomes a monopolist, it typically reduces output to increase prices, leading to a higher price and lower output compared to a competitive market. This is because a monopolist maximizes profit where marginal revenue equals marginal cost, which usually results in a lower quantity and higher price than in competitive markets.