The true cost of monopoly power to society is attributable to
A) the higher price that consumers must pay.
B) the reduction in output by the monopolist.
C) the excess profits enjoyed by the monopolist.
D) the failure of other firms to enter the industry.

Question

Quizplus · Accepted Answer

The true cost of monopoly power to society is primarily due to the reduction in output by the monopolist, which leads to a loss of economic efficiency and a decrease in consumer surplus. This is because monopolists produce less and charge higher prices than would be the case in a competitive market, leading to a deadweight loss to society.

The True Cost of Monopoly Power to Society Is Attributable