Economics · May / June 2017 · Paper 12 · Question 14
2281Types of markets
A monopoly takes over an industry from competitive firms. What is not likely to be true about a monopoly compared with a competitive firm?
- AA monopoly will earn a higher rate of profit.
- BA monopoly will gain a greater share of the market.
- CA monopoly will offer a wider choice to the consumer.
- DA monopoly will operate on a larger scale of production.
As printed in the paper
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Correct answer: C. A monopoly will offer a wider choice to the consumer.
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