In the Text, When the Nick Rudd Ice Company Starts

Multiple Choice

In the text, when the Nick Rudd Ice Company starts as a monopoly and then finally faces competition from a new entering ice company, its

A) price falls, its economic profit falls, but its output increases
B) price falls, its economic profit falls, and its ATC falls
C) price falls, its economic profit falls, and it faces a more elastic demand curve
D) price increases, its economic profit falls, and it faces a less elastic demand curve
E) ATC falls, its economic profit falls, and it faces a less elastic demand curve