Exhibit 10-8
-Refer to Exhibit 10-8. The loss to consumers from monopoly includes area

Name: Exhibit 10-8 -Refer to Exhibit 10-8. The loss to consumers from monopoly includes area
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Question

Exhibit 10-8 
-Refer to Exhibit 10-8. The loss to consumers from monopoly includes area

Quizplus · Accepted Answer

The loss to consumers from monopoly includes the deadweight loss (ACD) and also the transfer of surplus from consumers to producers (EFB), which both result from the monopolist's ability to charge a higher price and reduce output compared to a competitive market. Thus, the correct choice is C.

Exhibit 10-8 -Refer to Exhibit 10-8. the Loss to Consumers from Monopoly