When comparing a monopoly equilibrium to a competitive market equilibrium,the consumer suffers two types of losses.They are
A)the deadweight loss due to the output that is produced beyond the competitive level,and the transfer of consumer surplus to the monopolist .
B)the loss of both consumer surplus and producer surplus.
C)a loss of consumer surplus due to the output that is not produced,and the transfer of consumer surplus to the monopolist.
D)the deadweight loss due to the output that is produced and the reduced incentive for innovation by the monopolist.
E)the deadweight loss due to the output that is not produced and the transfer of producer surplus to the monopolist.

Question

Quizplus · Accepted Answer

In a monopoly, consumer surplus is lost because less output is produced compared to a competitive market, and some consumer surplus is transferred to the monopolist as higher prices.

When Comparing a Monopoly Equilibrium to a Competitive Market Equilibrium,the