Question

If competition decreases in a certain industry

a. it would not matter because competition has very little affect in a market economy.
b. A company that is in that industry may have and exert more economic power.
c. Prices will most likely be lower in that industry
d. Resources will be allocated more efficiently

Answer 1

Option "b" is correct. It is because that any industry without competition always move towards its fatal destruction. The quality of items being produced in such industry degraded with passage of time. So in this case, the the company that belongs to such an industry has to utilize its economic power for its own survival and in the favor of the remaining industry.