The deadweight loss of monopoly is caused by:
A)too little output being produced.
B)the marginal cost exceeding the marginal revenue.
C)the marginal cost exceeding marginal value.
D)average costs exceeding average revenue.

Question

Quizplus · Accepted Answer

The deadweight loss of monopoly is caused by too little output being produced compared to what would be produced in a competitive market. This results in a loss of economic efficiency, as the monopoly price is higher and the quantity produced is lower than in a competitive market, leading to a welfare loss for consumers without a corresponding gain for producers.

The Deadweight Loss of Monopoly Is Caused By