Why Does a Efficiency Loss Arise Under Monopoly Rather Than

Multiple Choice

Why does a efficiency loss arise under monopoly rather than under perfect competition?

A) A monopolist charges a lower price for the product to gain market entry.
B) A monopolist sells a lesser quantity at a higher price.
C) There is a net increase in consumer surplus but a net decline in producer surplus.
D) There is an increase in producer surplus,consumer surplus remaining unchanged.
E) A monopolist sells a greater quantity than a perfect competitor.