The Diagram Below Shows the Demand and Supply Curves in a Perfectly

question 58

Multiple Choice

The diagram below shows the demand and supply curves in a perfectly competitive market.
FIGURE 12- 5
-When comparing a monopoly equilibrium to a competitive market equilibrium,the consumer suffers two types of losses.They are

• A)the deadweight loss due to the output that is produced beyond the competitive level,and the transfer of consumer surplus to the monopolist
• B)the deadweight loss due to the output that is produced and the reduced incentive for innovation by the monopolist.
• C)the loss of both consumer surplus and producer surplus.
• D)a loss of consumer surplus due to the output that is not produced,and the transfer of consumer surplus to the monopolist.
• E)the deadweight loss due to the output that is not produced and the transfer of producer surplus to the monopolist.

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