Compared to a perfectly competitive industry, a single-price monopoly with the same costs will
A) create less consumer surplus.
B) create less economic profit.
C) create a deadweight loss.
D) Both answers A and C are correct.

Question

Quizplus · Accepted Answer

A single-price monopoly reduces consumer surplus because it restricts output to raise prices, and it creates a deadweight loss due to the inefficient allocation of resources compared to a perfectly competitive market.

Compared to a Perfectly Competitive Industry, a Single-Price Monopoly with the Same