If a single monopolist enjoying internal economies of scale is replaced...

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If a single monopolist enjoying internal economies of scale is replaced by a large number of producers operating under perfect competition, it may be said that

A. Both price and output will rise

B. Price will increase and output will fall

C. Price will increase but the effect on output will be indeterminate

D. Output will fall but the effect on price will be indeterminate

Answer: Option C

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