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Is producer surplus minimized OR maximized in a monopoly, what about consumer surplus in a monopoyy?

Is producer surplus minimized OR maximized in a monopoly, what about consumer surplus in a monopoyy?

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Answer #1

Monopoly generates deadweight loss. This means that total surplus when there is a monopoly is less than it would be if the same market were competitive.so it is minimized in monopoly as there is deadweight loss.

A monopolist charges a price higher than a competitive market structure and produces fewer units than a competitive market structure. Because of the higher monopoly price, the area of consumer surplus decreases.

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