5 The deadweight loss from monopoly arises because a the monopoly firm makes higher profits than a...

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5 The deadweight loss from monopoly arises because a the monopoly firm makes higher profits than a competitive firm would.

b some potential consumers who forgo buying the good value it more than its marginal cost.

c consumers who buy the good have to pay more than marginal cost, reducing their consumer surplus.

d the monopoly firm chooses a quantity that fails to equate price and average revenue.

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Principles Of Microeconomics

ISBN: 125206

8th Edition

Authors: Joshua Gans, Stephen King, Martin Byford, N Gregory Mankiw

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