In comparison to the price a competitive firm charges,monopoly pricing has the effect of causing what outcome
A)a higher level of output
B)a higher price
C)a larger consumer surplus
D)smaller deadweight losses

Question

Quizplus · Accepted Answer

Monopoly pricing typically results in a higher price than what a competitive firm would charge. This is because, as the only supplier in the market, the monopolist has the power to set prices above the competitive level and restrict output to maximize profits. This, in turn, reduces consumer surplus and can lead to larger deadweight losses.

In Comparison to the Price a Competitive Firm Charges,monopoly Pricing