The diagram illustrates how an industry’s cost of production changes when it shifts from perfect competition to monopoly. The demand for the industry’s product remains unchanged. What impact will this change in market structure have on price, output and consumer surplus?
- 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