Deadweight loss
A)measures monopoly inefficiency.
B)exceeds monopoly profits.
C)equals monopoly profits.
D)equals monopoly revenues minus profits.

Question

Quizplus · Accepted Answer

Deadweight loss measures the inefficiency created by a monopoly, as it represents the lost surplus that would have existed if the market were competitive. The deadweight loss exceeds the monopoly profits because it reflects the net loss to society, while profits represent only the gains to the monopolist. Therefore, choices B, C, and D are incorrect.

Deadweight Loss