Should a monopolist's freedom to refuse to deal with its dealers be restricted? In thiscase, suppose that this refusal would drive a dealer out of business. Explain the welfareeffects.

Yes

Explanation:

Note that, the term "refusal to deal" with dealers is a situation in which one firm refuses to sell to dealers ans is only willing to sell at a price that is considered "too high". Also note that restriction of refusal is subject to the jurisdiction of the firm.

However, in a case a Non-monopolistic firms they are free to make these decisions without risk of violating competition laws. The most common welfare effects involves a negative impact on competition, that affects the end-users due rise in prices.