By reducing its output compared to a competitive market, a monopoly leads to
A) a more efficient use of resources.
B) external benefits.
C) external costs.
D) a deadweight loss.

Question

Quizplus · Accepted Answer

A monopoly reduces output and raises prices compared to a competitive market, leading to a deadweight loss as some consumer and producer surplus is not realized.

By Reducing Its Output Compared to a Competitive Market, a Monopoly