The Additional Producer Surplus That a Monopolist Gains Causes Which

question 136

Multiple Choice

The additional producer surplus that a monopolist gains causes which of these?

• A) reduction in consumer surplus only
• B) creation of deadweight loss only
• C) neither reduction in consumer surplus nor creation of deadweight loss
• D) both reduction in consumer surplus and creation of deadweight loss

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Definitions:

Annual

Occurring once every year.

Plains Droughts

Long periods of abnormally low rainfall, especially prevalent in the Great Plains of the United States, leading to severe water shortages and agricultural difficulties.

Crop Output

Crop output refers to the total quantity of agricultural products harvested in a given period, influencing food supply and economic health.

Depopulation

The reduction in the number of people in a given area due to factors like disease, war, or emigration.