If a firm is the sole supplier of a good for which there are no close substitutes,and barriers to entry into the industry exist,it must be that
A) profit will be earned.
B) losses will never occur.
C) any price can be charged.
D) price and marginal revenue are the same.
E) a deadweight loss to society will occur.

Question

Quizplus · Accepted Answer

A monopoly typically results in a deadweight loss to society because it restricts output below the socially optimal level, leading to higher prices and reduced consumer and producer surplus.

If a Firm Is the Sole Supplier of a Good