Monopoly pricing prevents some mutually beneficial trades from taking place.How may these unrealized mutually beneficial trades best be characterized

Question

Quizplus · Accepted Answer

The unrealized mutually beneficial trades, which are prevented by monopoly pricing, create a deadweight loss to society as they represent a situation where there are potential gains from trade which are not being realized. This creates inefficiency in the market as both the buyer and seller are worse off than they could be if the trade were to take place. Therefore, B is the correct answer. A, C, and D are not correct as they do not accurately characterize this situation.

Monopoly Pricing Prevents Some Mutually Beneficial Trades from Taking Place