Compared to a Perfectly Competitive Industry, a Single-Price Monopoly with the Same

question 568

Multiple Choice

Compared to a perfectly competitive industry, a single-price monopoly with the same costs will

• A) create less consumer surplus.
• B) create less economic profit.
• C) create a deadweight loss.
• D) Both answers A and C are correct.

---

Definitions:

Standard Deviation

A measure of the dispersion or variability of a set of data points or investment returns, indicating the degree of risk.

Portfolio

A collection of various investments held by an individual, company, or financial institution.

Risky Bond Portfolio

A collection of bonds with higher default risk, which may offer higher yields in compensation for the increased risk of loss.

Standard Deviation

A statistical measure of the dispersion or variability of a set of values, representing how spread out the numbers are from the mean.