If a good has only one producer, with no threat of competition, the market for this good likely:

Question

Quizplus · Accepted Answer

In a market with only one producer and no competition, the producer has the power to set the price at a level that maximizes their profit, which will generally be higher than the competitive price. This inefficiently high price leads to a decrease in consumer surplus and may result in a deadweight loss. Therefore, the correct answer is B.

If a Good Has Only One Producer, with No Threat