Monopolistic Competition a Monopolistic Competition and economic Efficiency o The monopoly power(differentiation) yields a higher price than perfect competition. If price was lowered to the point where MC=D, consumer surplus would increase by the yellow triangle Chapter 12 Slide 13Chapter 12 Slide 13 Monopolistic Competition n Monopolistic Competition and Economic Efficiency l The monopoly power (differentiation) yields a higher price than perfect competition. If price was lowered to the point where MC = D, consumer surplus would increase by the yellow triangle