Assume someone organizes all farms in the nation into a single-price monopoly.As a result,the price consumers pay for food
A) does not change, that is, it remains constant.
B) falls.
C) rises.
D) might rise or fall depending on whether the demand for food is elastic or inelastic.
E) might rise or fall depending on whether the monopoly's marginal revenue curve lies above or below its demand curve.

Question

Quizplus · Accepted Answer

When all farms in the nation are organized into a single-price monopoly, the monopoly can control the amount of food that enters the market and thus, push up the prices. Therefore, the price consumers pay for food is likely to increase.

Assume Someone Organizes All Farms in the Nation into a Single-Price