The Following Figures Show the Demand and Cost Curves of a Perfectly

Multiple Choice

The following figures show the demand and cost curves of a perfectly competitive firm and a monopoly respectively.Figure 11.7
D: Average Revenue
AC: Average cost
MC: Marginal cost
MR: Marginal cost
-Why does an 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.