Which of the following conditions could lead to an inefficient quantity of pretzels being produced?
A) the existence of many producers of pretzels
B) the existence of many consumers of pretzels
C) the existence of a single producer and seller of pretzels
D) All of the above conditions could cause the actual quantity of pretzels to be an inefficient quantity.

Question

Quizplus · Accepted Answer

A single producer and seller of pretzels could lead to a monopoly, which often results in an inefficient quantity being produced due to lack of competition and price setting above marginal cost.

Which of the Following Conditions Could Lead to an Inefficient