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Why Does a Monopoly Cause a Deadweight Loss

Question 97

Multiple Choice

Why does a monopoly cause a deadweight loss?


A) Because it does not produce some output for which marginal benefit exceeds marginal cost
B) Because it appropriates a portion of consumer surplus for itself
C) Because it increases producer surplus at the expense of consumer surplus
D) Because it does not produce some output for which demand exceeds supply

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