Why is a monopoly inefficient?
A) because the cost of increased production is less than the value that society places on it
B) because price exceeds marginal revenue
C) because consumers are forced to pay higher prices for products
D) because firms are able to earn economic profits

Question

Quizplus · Accepted Answer

A monopoly is inefficient because it produces less than the socially optimal quantity, where the cost of increased production is less than the value that society places on it, leading to a deadweight loss.

Why Is a Monopoly Inefficient