The diagram illustrates how an industry’s production cost changes when it shifts from perfect competition to monopoly. The demand for the industry’s product stays unchanged. How will this move in market structure affect price, output and consumer surplus in this industry?
- Aprice: increase; output: increase; consumer surplus: reduce
- Bprice: increase; output: reduce; consumer surplus: reduce
- Cprice: reduce; output: increase; consumer surplus: increase
- Dprice: reduce; output: reduce; consumer surplus: increase