Exhibit 9-15 -Why Might the True Deadweight Loss from a Nondiscriminating Monopolist

Multiple Choice

Exhibit 9-15
-Why might the true deadweight loss from a nondiscriminating monopolist be lower than the loss indicated in Exhibit 9-15

A) b, c, and e are correct
B) Resources may be spent to maintain the monopoly
C) The monopolist might engage in rent seeking
D) Inefficiency may increase because the monopolist is insulated from competition
E) The monopolist might charge a lower price to discourage entry