Assume someone organizes all farms in the nation into a monopoly.As a result,consumer surplus will
A) not change.
B) increase.
C) decrease.
D) either increase, decrease, or not change depending if the monopoly's marginal revenue curve lies below, above, or is the same as its demand curve.
E) None of the above answers is correct because the effect on consumer surplus depends on whether the monopoly is a single-price or a price-discriminating monopoly.

Question

Quizplus · Accepted Answer

When all farms in the nation are organized into a monopoly, the monopoly will have control over the market price of agricultural goods. This will result in higher prices for consumers, which will decrease consumer surplus.

Assume Someone Organizes All Farms in the Nation into a Monopoly.As