Answer to Question #61031 in Microeconomics for jerrod

Question

The economic inefficiency of a monopolist can be measured by
A.
the number of consumers who are unable to purchase the product because of its high price.
B.
the poor quality of service offered by monopoly firms.
C.
the excess profit generated by monopoly firms.
D.
the deadweight loss.

Answer 1

The economic inefficiency of a monopolist¬ can be measured by the deadweight loss, which is the loss in total surplus.
So, the correct answer is D.