The difference in total surplus between a socially efficient level of production and a monopolist's level of production is:

Question

Quizplus · Accepted Answer

The difference in total surplus between a socially efficient level of production and a monopolist's level of production is a deadweight loss, meaning it represents a loss of welfare to society. Choices A and B are incorrect as there may not always be regulatory revenues, and the difference in total surplus can be significant. Therefore, the correct answer is C, a deadweight loss.

The Difference in Total Surplus Between a Socially Efficient Level