The reason economists consider monopoly to be socially undesirable is that monopolists:
A)earn too much economic profit.
B)can charge any price they want.
C)exploit the inelastic nature of demand.
D)produce less than the socially optimal level of output.

Question

Quizplus · Accepted Answer

Because profit-maximizing monopolists produce a level of output at which price is greater than marginal cost, monopolists always produce less than the socially optimal level of output.

The Reason Economists Consider Monopoly to Be Socially Undesirable Is