In Comparison with Perfect Competition, a Single- Price Monopolist with the Same

question 119

Multiple Choice

In comparison with perfect competition, a single- price monopolist with the same costs creates a _______ consumer surplus and makes a _______ economic profit.

• A) larger; larger
• B) smaller; smaller
• C) larger; smaller
• D) smaller; larger

---

Definitions:

Edgeworth Box

A diagram used in economics to show the distribution of resources and the potential gains from trade between two individuals in a pure exchange economy.

Contract Curve

The contract curve represents a set of efficient allocations in the Edgeworth Box, where no participant could be made better off without making another participant worse off.

Pareto Optimal

A condition or situation in which it is impossible to make one party better off without making another party worse off, reflecting an optimal distribution of resources.

Initial Endowment

In economic theory, refers to the initial quantities of various assets or goods that an individual or entity possesses.