In general, with a monopolist's outcome:
A)consumers lose surplus.
B)monopolies earn profit.
C)deadweight loss occurs.
D)All of these are true.

Question

Quizplus · Accepted Answer

All of these statements are true in the context of a monopolist's outcome. Consumers lose surplus because monopolies tend to set higher prices than in competitive markets, leading to reduced consumer surplus. Monopolies can earn profits by setting prices above marginal costs, which is a result of their market power. Deadweight loss occurs because the higher monopoly price reduces the quantity sold below the socially optimal level, leading to inefficiencies in the market.

In General, with a Monopolist's Outcome