Suppose a perfectly competitive industry is suddenly transformed into a monopoly industry.We can assume that monopoly output will be _____ than will the competitive output and that _____.

A) higher;deadweight loss will emerge
B) lower;consumer surplus will increase
C) lower;deadweight loss will emerge
D) higher;consumer surplus will decrease

Deadweight Loss

A situation in economics where the total of consumer and producer surplus is not maximized due to factors like taxes or subsidies.

Monopoly Output

The quantity of goods or services produced and offered for sale by a monopolist, set to maximize profits under conditions of limited competition.

Competitive Output

The level of output at which a firm in a competitive market maximizes its profits, determined by the intersection of the industry's supply and demand curves.