In a monopoly market, total surplus
A)cannot be determined because there is no supply curve.
B)is less than in a competitive market.
C)is equal to consumer surplus.
D)is completely captured by the monopolist.

Question

Quizplus · Accepted Answer

In a monopoly market, the monopolist has the power to set the price higher than the marginal cost of production, resulting in a deadweight loss and reducing the total surplus in the market. Therefore, total surplus is less than in a competitive market where the price is set at the marginal cost of production.

In a Monopoly Market, Total Surplus