Suppose a Market Is Initially Perfectly Competitive with Many Firms

Multiple Choice

Suppose a market is initially perfectly competitive with many firms selling an identical product. Over time, however, suppose the merging of firms results in the market being served by only three or four firms selling this same product. As a result, we would expect

A) an increase in market output and an increase in the price of the product.
B) an increase in market output and an decrease in the price of the product.
C) a decrease in market output and an increase in the price of the product.
D) a decrease in market output and a decrease in the price of the product.