A single-price monopolist is inefficient because
A) MR = MC.
B) P ATC.
C) it creates a deadweight loss.
D) it increases producer surplus.

Name: A single-price monopolist is inefficient because A) MR = MC. B) P > ATC. C) it creates a deadweight loss. D) it increases producer surplus.
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Question

A single-price monopolist is inefficient because
A) MR = MC.
B) P > ATC.
C) it creates a deadweight loss.
D) it increases producer surplus.

Quizplus · Accepted Answer

A single-price monopolist is inefficient because it creates a deadweight loss by producing less than the socially optimal quantity, where marginal cost equals marginal benefit.

A Single-Price Monopolist Is Inefficient Because