One of the reasons that the government discourages and regulates monopolies is that
A.
producer surplus is lost and consumer surplus is gained.
B.
monopoly prices ensure productive efficiency but cost society allocative efficiency.
C.
monopoly firms do not engage in significant research and development.
D.
consumer surplus is lost with higher prices and lower levels of output.
E.
lower prices and higher levels of output create deadweight loss.
Exam No： AP Micro Practice Test 4 Year：2024 Question No：45
Answer:
D
Knowledge points:
4.2 Monopoly
6.1 Socially Efficient and Inefficient Market Outcomes
6.4 The Effects of Government Intervention in Different Market Structures
Solution:
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