In comparison to perfect competition, monopoly price-quantity combinations generate

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Monopoly price-quantity combinations generate deadweight loss due to the fact that the quantity produced is lower than the socially optimal level, causing a loss in efficiency and surplus. This is not the case in perfect competition where the quantity produced is at the socially optimal level, leading to a higher consumer surplus and no deadweight loss. Monopoly price-quantity combinations may also result in higher prices and lower quantities, reducing consumer surplus and potentially decreasing overall welfare. The producer surplus in a monopoly is typically larger than in perfect competition as they can charge higher prices due to the lack of competition.

In Comparison to Perfect Competition, Monopoly Price-Quantity Combinations Generate