Suppose the GoSports pennant monopoly is broken up and the pennant industry becomes perfectly competitive.We would expect the _____ surplus to increase and _____ surplus to decrease after the breakup.
A)producer;consumer and total
B)consumer;producer and total
C)consumer and total;producer
D)producer and total;consumer

Question

Quizplus · Accepted Answer

When a monopoly is broken up and the industry becomes perfectly competitive, consumer surplus and total surplus increase due to lower prices and increased output, while producer surplus decreases because of increased competition and lower prices.

Suppose the GoSports Pennant Monopoly Is Broken Up and the Pennant