Which of the following statements is not correct?
A)Part of the deadweight loss associated with monopoly is measured by the monopolist's economic profit.
B)Marginal cost is always less than average total cost in a natural monopoly.
C)Discount coupons available free to the public are a type of price discrimination.
D)Anti-trust laws make it harder for firms to create synergies.

Question

Quizplus · Accepted Answer

The deadweight loss in a monopoly is not measured by the monopolist's economic profit; it is the loss of total welfare or efficiency in the market due to the monopolist setting a higher price and producing less output than in a competitive market.

Which of the Following Statements Is Not Correct