Economists Consider Monopolists

Multiple Choice

Economists consider monopolists

A) to be efficient, since they earn greater profits than perfect competitors.
B) to be inefficient since all consumer surplus is transferred to the monopolist in the form of profits.
C) to be inefficient since they earn less producers' surplus than all firms taken together in a competitive market.
D) to be inefficient since the monopolist restricts output from the competitive level, thus creating dead-weight loss.