Is a single-price monopoly efficient? No, because it creates a deadweight loss.

ID: 1225535 • Letter: I

Question

Is a single-price monopoly efficient?

No, because it creates a deadweight loss.

Yes, because it produces the quantity at which MR = MC.

Yes, because it creates a deadweight loss.

Yes, because consumers gain and producers lose some of their surpluses.

Yes, because consumers lose and producers gain some of their surpluses.

No, because it creates a deadweight loss.

Yes, because it produces the quantity at which MR = MC.

Yes, because it creates a deadweight loss.

Yes, because consumers gain and producers lose some of their surpluses.

Yes, because consumers lose and producers gain some of their surpluses.

In a single price monopoly, price, which equals marginal benefit, exceeds marginal cost and because of that deadweight loss arises.

OPTION A

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.