If One Producer Has Control Over an Entire Market and Underproduces,the

question 111

Multiple Choice

If one producer has control over an entire market and underproduces,the producer will

• A) increase producer surplus by lowering pollution costs.
• B) increase consumer surplus by lowering producer surplus.
• C) increase both consumer and producer surplus.
• D) create a deadweight loss.
• E) decrease the deadweight loss that would exist if the market were efficient.