Monopolists are criticized because they are inefficient. What is meant by this statement?
A) Monopolists charge too high a price.
B) Monopolists don't innovate enough to control pollution.
C) Monopolists produce a large quantity of waste.
D) Monopolists usually don't produce at the minimum of the ATC.
E) Monopolists could use their resources better elsewhere.

Question

Quizplus · Accepted Answer

When a monopolist is not operating at the minimum of the average total cost (ATC), it means that they are not producing at the most efficient point possible. This leads to higher costs and lower levels of production than what would be possible under perfect competition. Thus, monopolists are criticized for being inefficient because they don't produce at the minimum of the ATC.

Monopolists Are Criticized Because They Are Inefficient