We know that the producer's surplus accruing to a simple monopoly firm must be greater than operating in a competitive market,else firms would not act as monopolists.

Question

Quizplus · Accepted Answer

As a monopolist has market power, they are able to charge a higher price than in a competitive market, resulting in a higher producer's surplus. If the surplus were not higher than in a competitive market, there would be no incentive for firms to operate as monopolists.

We Know That the Producer's Surplus Accruing to a Simple