The deadweight loss from monopoly arises becausea. the monopoly firm makes higher profits than acompetitive firm would.b. some potential consumers who forgo buying thegood value it more than its marginal cost.c. consumers who buy the good have to pay morethan marginal cost, reducing their consumersurplus.d. the monopoly firm chooses a quantity that failsto equate price and average revenue.

Principles of Economics, 7th Edition (MindTap Course List)
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ISBN:9781285165875
Author:N. Gregory Mankiw
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Chapter15: Monopoly
Section: Chapter Questions
Problem 4QCMC
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The deadweight loss from monopoly arises because
a. the monopoly firm makes higher profits than a
competitive firm would.
b. some potential consumers who forgo buying the
good value it more than its marginal cost.
c. consumers who buy the good have to pay more
than marginal cost, reducing their consumer
surplus.
d. the monopoly firm chooses a quantity that fails
to equate price and average revenue.

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