True or false? Explain your answer. a. Societys welfare is lower under monopoly because some consumer surplus

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True or false? Explain your answer.

a. Society’s welfare is lower under monopoly because some consumer surplus is transformed into profit for the monopolist.

b. A monopolist causes inefficiency because there are consumers who are willing to pay a price greater than or equal to marginal cost but less than the monopoly price.

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Microeconomics

ISBN: 9781319245283

6th Edition

Authors: Paul Krugman Robin Wells

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