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Economics · May / June 2025 · Paper 12 · Question 16

2281Types of markets

If a very competitive market becomes a monopoly, what will be likely to increase and what will be likely to decrease?

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

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Correct answer: C. increase: long-run profits; decrease: competition

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