The difference in total surplus between the socially efficient level of production and the monopolist's level of production is
A)offset by regulatory revenues.
B)called a deadweight loss.
C)equal to the monopolist's profit.
D)Both b and c are correct.

Question

Quizplus · Accepted Answer

The difference in total surplus between the socially efficient level of production and the monopolist's level of production is called a deadweight loss. This represents the loss of potential surplus that could have been created if the market had been allowed to function efficiently. The monopolist's profit is not necessarily equal to the deadweight loss, as it depends on the specific circumstances and factors of the market.

The Difference in Total Surplus Between the Socially Efficient Level