Under Monopoly, the Portion of the Outgoing Consumer Surplus That

question 63

Multiple Choice

Under monopoly, the portion of the outgoing consumer surplus that is not transferred to the monopoly firm or still considered consumer surplus is:

• A) known as deadweight loss.
• B) the key to making the moral case against monopoly.
• C) transferred to the government.
• D) available to third parties who benefit from sales of the monopolist's output.

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Definitions:

World Price

The price at which goods are traded on the global market.

Supply Curves

Graphical representations showing the relationship between the price of a good and the quantity of that good that suppliers are willing to sell.

Demand Curves

A graphical representation that shows the relationship between the price of a good and the quantity demanded by consumers.

World Price

The worldwide market price of a good or service, affected by the balance of global demand and supply.