The "Deadweight Loss" from a Monopoly Refers to

question 13

Multiple Choice

The "deadweight loss" from a monopoly refers to

• A)the portion of a monopolist's profits that are above the competitive profit level.
• B)the increase in price due to the monopolization of a market.
• C)the inefficient use of factors of production by a monopoly.
• D)the loss of consumer surplus due to the monopolization of a market that is not transferred to another economic actor.

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Definitions:

Deficit Principle

A principle that suggests that once a relatively satisfied need is no longer met, it will re-emerge and become the dominant motivator of behavior.

Motivator

Anything that stimulates interest or action, especially in terms of encouraging people to achieve goals or improve performance.

Higher-order Needs

Advanced human needs in Maslow's hierarchy, including esteem and self-actualization, beyond basic physiological and safety requirements.

Esteem

A respect and admiration, typically for a person, that results from their achievements or qualities.