Compared to Perfect Competition, the Consumer Surplus in a Monopoly

question 197

Multiple Choice

Compared to perfect competition, the consumer surplus in a monopoly

• A)is unchanged because price and output are the same.
• B)is lower because price is higher and output is lower.
• C)is higher because price is higher and output is the same.
• D)is eliminated.

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Definitions:

Reciprocity Norm

A social norm suggesting that people should return the help they have received from others, creating a system of mutual cooperation and support.

Consistency Principle

The psychological tendency to remain aligned with our previous beliefs, attitudes, and behaviors to maintain a sense of self-consistency.

Need for Acceptance

A psychological condition where individuals seek acknowledgment and approval from others to feel valued and connected.

Benefit

An advantage, improvement, or positive outcome gained from something or as a result of a particular action or situation.