Compare the outcome in a market with a single-price monopoly to that in a perfectly competitive market

What will be an ideal response?


The monopoly charges a higher price and produces less output than in a perfectly competitive market. The monopoly creates a deadweight loss by producing less than the efficient quantity of output, whereas a perfectly competitive market produces the efficient quantity of output and so has no deadweight loss. The monopoly decreases consumer surplus and increases producer surplus from what they would be if the market is perfectly competitive.

Economics

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An example of rent seeking is

a. lobbying by industrial groups. b. lawsuits between rival firms. c. battles over exclusive licenses. d. All of the above are correct.

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Who is a price taker in a competitive market?

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An example of expansionary fiscal policy is

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Economics