With a monopolist's outcome, consumer surplus is _______ that of a competitive market.
A)higher than
B)lower than
C)the same as
D)Any of these is possible.

Question

Quizplus · Accepted Answer

In a monopolist's outcome, consumer surplus is lower than that of a competitive market because the monopolist can restrict output and raise prices above marginal cost, reducing the consumer surplus compared to a competitive market where prices are closer to marginal cost.

With a Monopolist's Outcome, Consumer Surplus Is _______ That of a Competitive