Economics 0455 · IGCSE · Market structure

Market structure — practice question

If a highly competitive market changes into a monopoly, what is likely to rise and what is likely to fall?

  • Aincrease: barriers to entry; decrease: economies of scale
  • Bincrease: consumer choice; decrease: prices
  • Cincrease: long-run profits; decrease: competition
  • Dincrease: output; decrease: market share

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