In the long run,
A)both monopolists and perfectly competitive firms produce at minimum long-run average total cost.
B)a monopolist will exit the industry if he or she is earning zero economic profit.
C)a monopolist will always charge a higher price than he or she charges in the short run.
D)consumer surplus is smaller if an industry is a monopoly than if it is perfectly competitive.

Question

Quizplus · Accepted Answer

In the long run, consumer surplus is smaller in a monopoly because monopolists restrict output to raise prices, unlike perfectly competitive firms that produce at minimum long-run average total cost, maximizing consumer surplus.

In the Long Run