A Single-Price Monopoly Transfers

question 153

Multiple Choice

A single-price monopoly transfers

• A) consumer surplus to producers.
• B) producer surplus to consumers.
• C) economic profit to consumers.
• D) economic profit to the government.
• E) economic profit to deadweight loss.

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Definitions:

Affordable Consumption Options

Choices of goods and services that are within the financial reach of a consumer, considering their income and expenses.

Inferior Goods

Goods whose demand decreases when consumer income rises, opposite of normal goods.

Normal Goods

Goods for which demand increases as the income of consumers increases.

GDP

Gross Domestic Product refers to the sum total of all monetary values of final goods and services produced within the geographical confines of a country during a given time frame.