Which of the following statements is true about a single-price monopoly (that cannot price-discriminate) compa

Which of the following statements is true about a single-price monopoly (that cannot price-discriminate) compared to a perfectly competitive market? (Assume the monopoly's MC curve is identical to the industry supply curve in the competitive market.)





I. A typical monopoly charges a price above the perfectly competitive price.





II. A typical monopoly generates less total economic surplus than a perfectly competitive market.





III. A typical monopoly produces less than the perfectly competitive quantity








A. I and II only





B. II and III only





C. I and III only





D. I, II, and IIIWhich of the following statements is true about a single-price monopoly (that cannot price-discriminate) compa
(I) True. The monopoly price is the price where MR=MC and the competitive price is the price where P=MC.





(II) True. The deadweight loss of monopoly is measured relative to maximum possible surplus, which is the curplus generated when P=MC is competitive equilibrium.





(III). This is true for the same reason as (I) above.