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Why Are the Estimates of the Deadweight Loss of Monopoly

Question 68

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Why are the estimates of the deadweight loss of monopoly not large?


A) Monopolized sectors of the economy are large relative to the whole economy.
B) Pure monopolies are not pervasive in market economies.
C) Monopolies tend to operate in markets with below average prices.
D) Although consumer surplus falls,total surplus actually increases in a monopoly.

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