Monopoly profit is not a social problem because
A)the size of the economic pie grows when monopoly profits increase.
B)producers are more efficient than consumers.
C)the profit represents a transfer from the consumer to the producer with no loss in total surplus.
D)None of the above are correct.

Question

Quizplus · Accepted Answer

Monopoly profit represents a transfer from the consumer to the producer with no loss in total surplus, so it is not a social problem. The other options do not accurately reflect the situation with monopoly profit.

Monopoly Profit Is Not a Social Problem Because