The deadweight loss emerging in the standard monopoly pricing stems from:
A)marginal cost is upward- sloping.
B)the monopolist charges the same price for all units sold.
C)price is lower than the marginal revenue.
D)the fact that monopolists are evil.

Question

Quizplus · Accepted Answer

The monopolist charges the same price for all units sold, which is higher than the marginal cost. This leads to a deadweight loss, as some consumers who would be willing to pay the marginal cost are excluded from the market.

The Deadweight Loss Emerging in the Standard Monopoly Pricing Stems