Which of the following occurs with both perfectly price-discriminating and single-price monopolies?
A)The amount of output is inefficient.
B)All consumer surplus goes to the monopoly.
C)Deadweight loss is created.
D)Consumer surplus is smaller than in a perfectly competitive industry.
E)Demand is perfectly elastic.

Question

Quizplus · Accepted Answer

In both perfectly price-discriminating and single-price monopolies, consumer surplus is smaller than in a perfectly competitive industry because monopolies restrict output and raise prices compared to perfect competition.

Which of the Following Occurs with Both Perfectly Price-Discriminating and Single-Price