When comparing perfect competition to a single-price monopoly with the same costs
A) both market types use resources efficiently.
B) there is a deadweight loss associated with a monopoly.
C) the sum of producer and consumer surplus is maximized under a monopoly.
D) the sum of producer and consumer surplus is minimized under perfect competition.

Question

Quizplus · Accepted Answer

In a monopoly, the price is higher and the quantity is lower than in perfect competition, leading to a deadweight loss due to inefficient resource allocation.

When Comparing Perfect Competition to a Single-Price Monopoly with the Same