Why do consumers suffer a cost


Problem

A patent gives a firm a monopoly in production of the patented good. While the monopoly profits provide an incentive for firms to innovate, the monopoly power imposes a cost on consumers. Why do consumers suffer a cost? Is it greater than the profits earned by the monopolist?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: Why do consumers suffer a cost
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