Which of the following best explains an economic criticism of unregulated monopolists?
A) Monopolists do not try to minimize their fixed costs of production.
B) Monopolists produce where marginal revenue is greater than marginal costs.
C) Monopolists attempt to produce too many products, and as a result, their prices are high, and consumer's waste time trying to choose between too many options.
D) Monopolists restrict output, and as a result, they fail to produce units that are valued more than the marginal cost of producing them.

Question

Quizplus · Accepted Answer

Unregulated monopolists restrict output, meaning that they do not produce units that are valued more than the marginal cost of producing them. This results in an inefficient allocation of resources and can lead to higher prices for consumers.

Which of the Following Best Explains an Economic Criticism of Unregulated