The social cost associated with the distortion in consumption from a monopoly price is called
A) patent protection.
B) government failure.
C) deadweight loss.
D) marginal cost.

Question

Quizplus · Accepted Answer

The social cost associated with the distortion in consumption from a monopoly price is referred to as deadweight loss. This occurs because the monopoly price typically exceeds the marginal cost, leading to reduced output and consumption compared to a competitive market, which results in a loss of economic efficiency.

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