With a monopoly, the consumer's surplus is lower than it would be with a perfectly competitive industry.

Name: With a monopoly, the consumer's surplus is lower than it would be with a perfectly competitive industry.
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Question

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A monopoly has the power to set higher prices than what would be set in a perfectly competitive industry, resulting in a lower consumer surplus. In a perfectly competitive industry, firms compete to offer the lowest price possible, leading to a higher consumer surplus.

With a Monopoly, the Consumer's Surplus Is Lower Than It