A monopoly creates a deadweight loss to society because it produces less output than the socially efficient level.

Name: A monopoly creates a deadweight loss to society because it produces less output than the socially efficient level.
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Question

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A monopoly restricts output below the socially efficient level to maximize its profits, leading to a deadweight loss as the potential gains from trade between buyers and sellers are not fully realized.

A Monopoly Creates a Deadweight Loss to Society Because It