The social cost associated with the distortion in consumption from a monopoly price is called
A) producer surplus.
B) rent-seeking behavior.
C) the excess burden of a monopoly.
D) a network externality.

Question

Quizplus · Accepted Answer

The excess burden of a monopoly refers to the inefficiency or welfare loss in the market due to the monopolist's pricing and output decisions, which leads to a distortion in consumption patterns away from what would occur in a competitive market.

The Social Cost Associated with the Distortion in Consumption from a Monopoly