The loss of economic benefits in society as a result of monopoly arises from

Question

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Monopolies have the power to set higher prices than in a competitive market, which reduces the quantity demanded, resulting in a decrease in consumer surplus. Monopolies can also limit the quantity supplied, causing a decrease in producer surplus. The loss in economic benefits results from the reduction in overall social welfare due to the loss in consumer and producer surplus. Therefore, the loss in consumer surplus is the primary source of economic loss in society as a result of monopoly.

The Loss of Economic Benefits in Society as a Result