Economics 9708 · AS & A Level · 7.6

7.6 — practice question

If a competitive market changes into a monopoly, what is likely to occur?

  • AConsumer surplus will be reduced by the amount of the deadweight loss.
  • BProducer surplus will be reduced by the amount of the deadweight loss.
  • CThe loss in consumer surplus will be balanced by the increase in producer surplus.
  • DThere will be a transfer of surplus from consumer to producer.

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