Economists Consider Monopolists

question 51

Multiple Choice

Economists consider monopolists

• A)to be efficient, since they earn greater profits than perfect competitors.
• B)to be inefficient since all consumer surplus is transferred to the monopolist in the form of profits.
• C)to be inefficient since they earn less producers' surplus than all firms taken together in a competitive market.
• D)to be inefficient since the monopolist restricts output from the competitive level, thus creating dead-weight loss.