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The Consumer Surplus Lost Because Monopolists Restrict the Production of Output

Question 68

Multiple Choice

The consumer surplus lost because monopolists restrict the production of output represents a welfare loss because:


A) it is transferred to producers in the form of profit.
B) consumers pay a higher price than they would in a more competitive market.
C) society is not using its scarce resources in the best way possible.
D) of both a. and b., but not c.

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