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Management · Q183

Managerial Economics

Graduate and Post Graduate · Management · question 183

Q183

If a single monopolist enjoying internal economies of scale is replaced by a large number of producers operating under perfect competition, it may be said that

A.
Both price and output will rise
B.
Price will increase and output will fall
C.
Price will increase but the effect on output will be indeterminate
Answer
D.
Output will fall but the effect on price will be indeterminate

Answer: Option C

Solution

Answer: Option C
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