Many economists criticize monopolists because they produce at output levels that are not efficient.In other words,monopolists

Question

Quizplus · Accepted Answer

Monopolists have no incentive to produce at their minimum ATC because they face no competition, so they can charge higher prices and still sell their products. As a result, they may not produce at the efficient output level, which is where marginal cost equals marginal revenue, and the minimum point of the average total cost (ATC) curve. Instead, they may produce at a lower quantity and higher price to increase their profits, leading to a deadweight loss and inefficiency in the market.

Many Economists Criticize Monopolists Because They Produce at Output Levels