Why does a monopoly cause a deadweight loss? a. because it increases producer surplus at the expense of consumer surplus b. because it stops producing output at a point where price is above marginal cost c. because it does not produce some output for which demand exceeds supply   d. because it appropriates a portion of consumer surplus for itself

B. because it stops producing output at a point where price is above marginal cost

Explanation:

Monopoly

A monopoly occurs when there is only enterprise to produce a particular product which means there is little to no competition whilst producing that product or service.

A monopoly has powerful in influencing marketing decisions such as managing the price changes .

In order to make a great commodity a monopoly decision on a price should be to raise the price above the amount of available products .

When there are no gains for either customer nor producer than a dead weight loss will result.

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