Which of the following is the result of a monopolist's pricing and output behaviour,as compared to a perfectly competitive outcome?
A)an increase in both consumer and producer surplus
B)a reduction in producer surplus and increase in consumer surplus
C)an increase in the sum of consumer and producer surplus
D)a reduction in both consumer and producer surplus
E)a reduction in the sum of consumer and producer surplus

Question

Quizplus · Accepted Answer

A monopolist reduces output and raises prices compared to a perfectly competitive market, leading to a deadweight loss and a reduction in the total surplus (sum of consumer and producer surplus).

Which of the Following Is the Result of a Monopolist's