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Question

A monopoly reduces the overall welfare of society and earns profit in the process because, compared to a competitive market, A) price is lower B) producer surplus is higher C) total surplus is lower D) consumer surplus is lower E) output is higher F) economic profits are lower

Answer

A monopoly, in contrast to a competitive market, reduces the overall welfare of society and gains profit in the process. This is because producer surplus is higher, total surplus is lower, and consumer surplus is lower. Producer surplus, being the difference between the price a person would accept for a certain quantity of a good and the price they could get for the good if they sold it at market value, allows producers to benefit from market sales. Any prices above the lowest price producers would normally accept for their goods result in a producer surplus. It is important to note that the Walras law may be relevant in this discussion. For more information on competitive markets, visit: brainly.com/question/29407851 #SPJ4