Economists are critical of monopoly because
A) monopolists can earn long-run economic profit.
B) monopolists can create a deadweight loss.
C) the demand for the monopolist's product is the market demand curve.
D) economies of scope result in lower average costs.

Question

Quizplus · Accepted Answer

Monopolists can create a deadweight loss because they restrict output to raise prices, leading to a loss of economic efficiency where potential gains from trade are not realized.

Economists Are Critical of Monopoly Because