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AP® Microeconomics

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Moderate

Monopoly gains vs. consumer losses

APMICR-3YGUUZ

The main reason that a single-price monopoly gains at the expense of consumers is that

A

the firm always engages in unfair pricing.

B

the firm charges a price where its marginal revenue equals its marginal cost.

C

the firm’s demand curve is no longer the market’s marginal benefit curve.

D

the firm charges more for a less than allocatively efficient quantity.

E

the firm fails to charge a price based on the willingness of consumers.