A single-price monopoly causes a deadweight loss because it
A) restricts its output so it is less than the efficient quantity.
B) increases the amount produced beyond the efficient quantity.
C) maximizes marginal revenue rather than minimizes marginal cost.
D) increases marginal cost.

Question

Quizplus · Accepted Answer

A single-price monopoly causes a deadweight loss by restricting its output to a level below the efficient quantity, which leads to a loss of total welfare in the market.

A Single-Price Monopoly Causes a Deadweight Loss Because It