-The figure above shows the demand for and costs of producing Charlene's Chocolates. If Charlene's Chocolates is a monopoly that charges one price to all customers, then consumer surplus is ________ and it creates a deadweight loss of ________.
A) $800; $400
B) $200; $100
C) $400; $200
D) $0; $200

Question

-The figure above shows the demand for and costs of producing Charlene's Chocolates. If Charlene's Chocolates is a monopoly that charges one price to all customers, then consumer surplus is ________ and it creates a deadweight loss of ________.
A) $800; $400 
B) $200; $100 
C) $400; $200 
D) $0; $200

Quizplus · Accepted Answer

In a monopoly, consumer surplus is reduced compared to perfect competition because the monopolist sets a higher price. The deadweight loss is the loss of total welfare due to the monopolist not producing at the socially optimal output level.

-The Figure Above Shows the Demand for and Costs of Producing