Compared to a similar perfectly competitive industry, a single- price monopoly
A) is more efficient because there is no wasteful competition.
B) creates a deadweight loss and decreases consumer surplus.
C) produces more output.
D) creates a deadweight loss and decreases economic profit.

Question

Quizplus · Accepted Answer

Monopolies create deadweight loss by producing less output and charging higher prices than perfectly competitive markets, leading to decreased consumer surplus as consumers pay more for fewer goods.

Compared to a Similar Perfectly Competitive Industry, a Single- Price