When We Compare Economic Welfare in a Monopoly Market to a Competitive

question 658

Multiple Choice

When we compare economic welfare in a monopoly market to a competitive market, the profits earned by the monopolist represent

• A)a transfer of benefits from the consumer to the producer.
• B)a loss in total welfare.
• C)the higher marginal costs incurred by the monopolists in comparison to competitive firms.
• D)the higher marginal revenues gained by the monopolists in comparison to competitive firms.

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Definitions:

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