The figure below shows the market equilibrium (point B) at the intersection of demand and supply curves under perfect competition.Figure 11.5
D: Market demand curve
S: Market supply curve
-The efficiency loss that occurs when a market is monopolized is known as:
A)a deadweight loss.
B)an inventory loss.
C)an economic loss.
D)a non-economic loss.
E)a capital loss.

Question

The figure below shows the market equilibrium (point B) at the intersection of demand and supply curves under perfect competition.Figure 11.5
  D: Market demand curve
S: Market supply curve
-The efficiency loss that occurs when a market is monopolized is known as:
A)a deadweight loss. 
B)an inventory loss. 
C)an economic loss. 
D)a non-economic loss. 
E)a capital loss.

Quizplus · Accepted Answer

Deadweight loss is the loss of economic efficiency that occurs when the equilibrium for a good or service is not achieved or when it is not achievable under a given set of constraints. In a monopolized market, the market equilibrium is not achieved due to the monopolist's ability to restrict output and charge a higher price, resulting in a deadweight loss.

The Figure Below Shows the Market Equilibrium (Point B) at the Intersection