Monopolies are inefficient because, at the profit-maximising output level,
A) MB = MC.
B) MC = MR.
C) MB does not equal MC.
D) MC does not equal MR.
E) P = ATC.

Name: Monopolies are inefficient because, at the profit-maximising output level, A) MB = MC. B) MC = MR. C) MB does not equal MC. D) MC does not equal MR. E) P = ATC.
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Question

Quizplus · Accepted Answer

Monopolies are inefficient because they produce where marginal benefit (MB) does not equal marginal cost (MC), leading to a deadweight loss in the market.

Monopolies Are Inefficient Because, at the Profit-Maximising Output Level