The welfare loss of monopoly is also called
A)converted consumer surplus
B)deadweight loss
C)economic profit under monopoly
D)producer surplus
E)contestable profit

Question

Quizplus · Accepted Answer

Deadweight loss refers to the loss of economic welfare that occurs when the optimal level of trade is not achieved. In the case of monopoly, the monopolist restricts output and charges higher prices, resulting in a reduction of consumer surplus and a decrease in overall economic welfare, which is known as the welfare loss or deadweight loss of monopoly.

The Welfare Loss of Monopoly Is Also Called