Which of the following statements comparing monopoly with competition is correct?
A)A monopolist produces a higher level of output and charges a lower price than a competitive firm would.
B)With perfect price discrimination, the total surplus under monopoly can be the same as under competition.
C)With or without price discrimination, the consumer surplus under monopoly is at least as large as it would be under competition.
D)The deadweight loss associated with monopoly is caused by the positive economic profits of the monopolist; competitive firms do not earn a positive economic profit so there is no deadweight loss under competition.

Question

Quizplus · Accepted Answer

With perfect price discrimination, a monopolist can capture all consumer surplus, making total surplus equal to that under perfect competition, where no deadweight loss occurs.

Which of the Following Statements Comparing Monopoly with Competition Is