The economic inefficiency of a monopolist can be measured by the
A)number of consumers who are unable to purchase the product because of its high price.
B)excess profit generated by monopoly firms.
C)poor quality of service offered by monopoly firms.
D)deadweight loss.

Question

Quizplus · Accepted Answer

Deadweight loss is a measure of economic inefficiency caused by a monopolist. It refers to the loss of consumer surplus and producer surplus that results from the monopolist producing less output at a higher price than would be produced in a perfectly competitive market. The other options (A, B, and C) do not directly measure the economic inefficiency of a monopolist.

The Economic Inefficiency of a Monopolist Can Be Measured by the