Society suffers a deadweight loss in a pure-monopoly market because

Question

Quizplus · Accepted Answer

In a pure-monopoly market, there is only one supplier or seller with a significant degree of control over the market. As a result, they can set higher prices on their products, which leads to a decrease in consumer demand, and ultimately reduces the market's output. This causes a deadweight loss because the reduced output and higher prices lead to a situation where social welfare is not maximized. Therefore, choice A, where the output is less, while price is more, than is socially optimal, represents the best answer.

Society Suffers a Deadweight Loss in a Pure-Monopoly Market Because