When comparing a monopoly with a perfectly competitive equilibrium, moving from a situation of perfect competition to monopoly leads to a:

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Moving from perfect competition to a monopoly leads to a deadweight loss, defined as the loss of efficiency in terms of foregone mutually beneficial transactions. Monopolies restrict output and charge higher prices, leading to decreased consumer surplus, producer surplus and total economic welfare. Moving from perfect competition to a monopoly leads to a deadweight loss because the monopolist restricts output and charges a higher price, resulting in a loss of consumer and producer surplus. Therefore, there is a reduction in total economic welfare.

When Comparing a Monopoly with a Perfectly Competitive Equilibrium, Moving