In an equilibrium in otherwise identical markets, producer surplus is higher for a monopolist than for a competitive firm.

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In a monopolistic market, the monopolist has the ability to restrict the quantity of output and charge a higher price than in a competitive market. This allows the monopolist to earn a higher producer surplus, as they are able to charge higher prices for the same quantity of goods produced. In contrast, a competitive firm faces market-determined prices and cannot charge a higher price than their competitors without losing market share, resulting in a lower producer surplus.

In an Equilibrium in Otherwise Identical Markets, Producer Surplus Is