When a Perfectly Competitive Industry Is Taken Over by a Monopoly,some

question 274

Multiple Choice

When a perfectly competitive industry is taken over by a monopoly,some consumer surplus is transferred to the monopolist in the form of

• A) marginal cost.
• B) economic profit.
• C) deadweight loss.
• D) taxes.
• E) average variable cost.

---

Definitions:

Product Scarcities

Situations where the supply of a product is insufficient to meet demand, often leading to increased prices and competition for available stock.

Private Property

Private property refers to the rights individuals or organizations have to own, use, and dispose of land, buildings, goods, or intellectual property privately, without interference from the government.

Innovation

The first commercially successful introduction of a new product, use of a new method of production, or creation of a new form of business organization.