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If an Industry Changes from Being Highly Competitive to a Monopoly

Question 43

Multiple Choice

If an industry changes from being highly competitive to a monopoly, this change can be represented by the:


A) loss in consumer surplus plus the loss in producer surplus
B) loss in producer surplus minus the gain in consumer surplus
C) gain in producer surplus plus the gain in consumer surplus
D) loss in consumer surplus plus the gain in producer surplus plus the deadweight loss

Correct Answer:

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