If a perfectly competitive industry suddenly became a monopolist, equilibrium output would _________, and the equilibrium price would _________.

Question

Quizplus · Accepted Answer

When a perfectly competitive industry becomes a monopolist, it gains control over the market and can restrict output to increase the price. Hence, the equilibrium output would decrease, and the equilibrium price would increase. Therefore, option D is the correct answer.

If a Perfectly Competitive Industry Suddenly Became a Monopolist, Equilibrium