Based on the effect of monopoly on the economy, the deadweight loss that arises from a monopoly is a consequence of the fact that the monopoly's "price is higher than the socially-optimal price."
Deadweight Loss in Monopoly is a term that is used to describe the condition which occurs when a monopoly charges a price to consolidate its power above marginal cost. This implies that the price charged by the monopoly is higher than the socially-optimal price.
This, this situation drives a "wedge" between the costs born by the consumer and supplier leading to what is known as a deadweight loss.
Typically Deadweight loss can also occur when the profit-maximizing monopoly firm produces a quantity of output that surpasses the socially-efficient quantity.
Hence, in this case, it is concluded that the correct answer is option A "price is higher than the socially-optimal price."
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