With a monopolist's outcome,producer surplus is:
A) higher than that of a competitive market.
B) lower than that of a competitive market.
C) the same as that of a competitive market.
D) Any of these is possible.

Question

Quizplus · Accepted Answer

In a monopoly, the producer can set higher prices due to lack of competition, leading to a higher producer surplus compared to a competitive market where prices are driven down by competition.

With a Monopolist's Outcome,producer Surplus Is