If a monopoly is forced to charge a price equal to marginal cost:
A)output will fall.
B)the deadweight loss will decrease.
C)consumer surplus will decrease.
D)other firms will enter the industry.

Question

Quizplus · Accepted Answer

If a monopoly is forced to charge a price equal to marginal cost, the deadweight loss will decrease because the monopoly will produce more output and sell it at a lower price. This will benefit consumers and reduce the monopoly's market power.

If a Monopoly Is Forced to Charge a Price Equal