In general,with a monopolist's outcome:
A) consumers lose surplus.
B) monopolies earn profit.
C) deadweight loss occurs.
D) All of these statements are true.

Question

Quizplus · Accepted Answer

A monopolist's outcome results in all of the above mentioned consequences. Consumers lose surplus as the monopolist charges a higher price than what would have prevailed under a competitive market equilibrium. Monopolies earn profits as they restrict output and charge higher prices. Furthermore, there is a deadweight loss which occurs due to the reduction in output and associated welfare loss which results from consumers not being able to buy units that they would have bought if the market was competitive.

In General,with a Monopolist's Outcome