Question:

Economists consider monopolists to be inefficient becasue?

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A. they can earn a long-run econimic profit at the expense of consumers.

B. All consumer suplus is lostr a scompared to perfect competition.

C. the monopolist raises price from the competitive level.

D. The monpolist restricts output from the competitive level, thus creating dead-weight loss.

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2 ANSWERS


  1. Yes, D.  Monopolies create dead-weight loss, an area which is foregone to society.


  2. D?

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