Assume that an industry is currently a monopoly.If the government breaks this monopoly up into a large number of small,perfectly competitive firms,which of the following will occur?

A) Both price and industry output will increase.
B) Price will fall and industry output will increase.
C) Price will increase and industry output will decrease.
D) Both price and industry output will decrease.

Perfectly Competitive Firms

Businesses operating in a market where no single buyer or seller has the power to influence prices, and products are homogeneous, resulting in many sellers and buyers.

Industry Output

Industry Output is the total product or service produced within an industry, which is a key indicator of economic activity and health.

Government

The governing body of a nation, state, or community, charged with regulating and administering public policy and affairs.