Deadweight losses due to monopoly include:
A)the transfer of producer surplus to consumers.
B)costs of acquiring and maintaining the monopoly position.
C)the redistribution of income in favor of consumers.
D)the excess of actual output over competitive output.

Question

Quizplus · Accepted Answer

Deadweight losses due to monopoly primarily stem from inefficiencies in the market, such as costs associated with acquiring and maintaining a monopoly position. These costs can lead to higher prices and reduced output compared to a competitive market, which in turn can cause a loss of economic welfare. Choices A, C, and D do not accurately describe deadweight losses due to monopoly.

Deadweight Losses Due to Monopoly Include