Which of the Following Would Take Place If a Competitive

Multiple Choice

Which of the following would take place if a competitive firm acquired monopoly power in the market through economies of scale and became a natural monopoly?

A) Producer surplus will increase and consumer surplus will fall
B) Consumer surplus will be transferred to producers resulting in a deadweight loss
C) Consumer surplus will fall but will not affect producer surplus
D) A deadweight loss will arise in the market equal to the fall in producer surplus