Which of the following would take place if a competitive firm acquired monopoly power in the market through economies of scale and became a natural monopoly?
A)Producer surplus will increase and consumer surplus will fall
B)Consumer surplus will be transferred to producers resulting in a deadweight loss
C)Consumer surplus will fall but will not affect producer surplus
D)A deadweight loss will arise in the market equal to the fall in producer surplus

Question

Quizplus · Accepted Answer

The Answer of Which of the following would take place if a competitive firm acquired monopoly power in the market through economies of scale and became a natural monopoly?
A)Producer surplus will increase and consumer surplus will fall
B)Consumer surplus will be transferred to producers resulting in a deadweight loss
C)Consumer surplus will fall but will not affect producer surplus
D)A deadweight loss will arise in the market equal to the fall in producer surplus

Which of the Following Would Take Place If a Competitive