Relative to a perfectly competitive market, a monopoly results in a gain in producer surplus equal to the gain in consumer surplus.
What happens when a perfectly competitive market becomes a monopoly?
If a perfectly competitive industry becomes a monopoly, then we know that the industry supply curve becomes the monopoly.
Does a monopoly reduce economic efficiency?
Yes, it does, because it causes a deadweight loss. If a perfectly competitive industry turns into a monopoly, then consumer surplus will.
Learn more about monopoly here: brainly.com/question/2043744
#SPJ2
