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Question
If marginal cost is constant, what happens to a market if it alters from perfect competition to monopoly without any change in the position of the market demand curve or any variation in costs?
A) Consumer surplus increases, and the previously existing deadweight loss decreases.
B) Consumer surplus increases, and the previously existing deadweight loss increases.
C) Consumer surplus is eliminated, and an equal -sized deadweight loss is created.
D) Consumer surplus decreases in size, and a deadweight loss is created.
Answer
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Related questions
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