In general,with a monopolist's outcome,total 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

With a monopolist's outcome, the monopolist restricts output to increase prices and profits, resulting in a lower quantity sold and a higher price for each unit sold. This leads to a deadweight loss (reduction in total surplus), as some consumers who were willing and able to pay for the good at the competitive price are now excluded due to the higher price. Therefore, the total surplus is lower than that of a competitive market.

In General,with a Monopolist's Outcome,total Surplus Is