The portion of consumer surplus that no one in society is able to obtain in a situation of monopoly is known as
A) a market failure.
B) a deadweight loss.
C) an unrealized loss.
D) a market externality.

Question

Quizplus · Accepted Answer

In a situation of monopoly, the monopolist charges a higher price than what would prevail in a competitive market, leading to a reduction in consumer surplus. The portion of consumer surplus that is lost and not transferred to the monopolist as producer surplus is known as deadweight loss. Deadweight loss represents a loss of economic efficiency and welfare in society. Therefore, option B is the correct answer. Options A, C, and D do not accurately describe the situation of monopoly and its effects on consumer surplus.

The Portion of Consumer Surplus That No One in Society