In the short run,if a monopoly is forced to charge a price equal to marginal cost:
A)output will fall.
B)the deadweight loss will decrease.
C)consumer surplus will decrease.
D)other firms will enter the industry.

Question

Quizplus · Accepted Answer

When a monopoly is forced to charge a price equal to marginal cost, it moves closer to the competitive outcome, reducing the deadweight loss associated with monopoly pricing. This is because the price now reflects the true cost of producing additional units, leading to a more efficient allocation of resources.

In the Short Run,if a Monopoly Is Forced to Charge