Suppose the GoSports pennant monopoly is broken up and the pennant industry becomes perfectly competitive.We would expect the _____ surplus to increase and _____ surplus to decrease after the breakup.

A) producer;consumer and total
B) consumer;producer and total
C) consumer and total;producer
D) producer and total;consumer

Producer Surplus

The difference between the amount producers are willing to sell a good for and the actual amount they receive, usually represented graphically as the area above the supply curve and below the market price.

Consumer Surplus

The differential between the amount envisioned by consumers to pay for a good or service and the actual amount paid.

Perfectly Competitive

A market structure characterized by many buyers and sellers, free entry and exit, and a homogeneous product.