If a monopoly suddenly became a perfectly competitive industry, equilibrium output would _________, and the equilibrium price would _________.
A) increase; increase
B) decrease; decrease
C) increase; decrease
D) decrease; increase

Question

Quizplus · Accepted Answer

In a perfectly competitive market, firms produce at a higher output and sell at a lower price compared to a monopoly, due to increased competition and the absence of market power.

If a Monopoly Suddenly Became a Perfectly Competitive Industry, Equilibrium