The existence of a monopoly:increases total surplus.increases consumer surplus.increases producer surplus.
A)I and III only
B)II only
C)III only
D)None of these result from the existence of a monopoly.

Question

Quizplus · Accepted Answer

Monopolies typically increase producer surplus because they can set prices above competitive levels, but they decrease consumer surplus and total surplus by producing less and charging higher prices than in competitive markets.

The Existence of a Monopoly:increases Total Surplus