Principles of Microeconomics, 7th Edition

Published by South-Western College
ISBN 10: 128516590X
ISBN 13: 978-1-28516-590-5

Chapter 15 - Part V - Monopoly - Quick Check Multiple Choice - Page 324: 5

Answer

The deadweight loss from monopoly arises because: b) some potential consumers who forgo buying the good value it more than its marginal cost.

Work Step by Step

A monopolist charges a price for a good that is higher than the marginal cost of producing that good. Because of this, some customers who are willing to pay more for the good than its marginal cost, but aren't willing to pay the price the monopoly charges, are left without buying the good. This creates the inefficiency that is called the deadweight loss.
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