Compared to a competitive industry, a monopoly transfers
A) deadweight loss away from producers to consumers.
B) deadweight loss away from consumers to producers.
C) producer surplus to consumers.
D) consumer surplus to producers.

Question

Quizplus · Accepted Answer

In a monopoly, consumer surplus is transferred to producers because monopolies can set higher prices than in competitive markets, capturing more surplus from consumers.

Compared to a Competitive Industry, a Monopoly Transfers