A nondiscriminating pure monopolist is generally viewed as
A)productively efficient but allocatively inefficient.
B)productively inefficient but allocatively efficient.
C)both productively and allocatively inefficient.
D)both productively and allocatively efficient.

Question

Quizplus · Accepted Answer

A nondiscriminating pure monopolist is generally both productively and allocatively inefficient because it does not produce at the lowest average cost (productive inefficiency) and does not produce the quantity of output where price equals marginal cost (allocative inefficiency).

A Nondiscriminating Pure Monopolist Is Generally Viewed as