The portion of consumer surplus that would have existed in a perfectly competitive market but is unobtainable by anyone in society under a monopoly is known as
A) monopoly profits.
B) an unattainable surplus.
C) a deadweight loss.
D) an external cost.

Question

Quizplus · Accepted Answer

The portion of consumer surplus that would have existed in a perfectly competitive market but is unobtainable by anyone in society under a monopoly is known as a deadweight loss. This is because in a perfectly competitive market, prices would be lower and output would be higher, resulting in a higher consumer surplus. However, under a monopoly, the higher prices and lower output lead to a reduction in consumer surplus, which is the deadweight loss.

The Portion of Consumer Surplus That Would Have Existed in a Perfectly