When we say that a monopoly does not produce a socially desirable level of output we mean:
A) the company does not produce goods or services desired by consumers.
B) the company does not break even by producing at the point at which price is equal to average total cost.
C) the company produces too little and does not use enough resources.
D) the company produces too much and wastes scarce resources.

Question

Quizplus · Accepted Answer

A monopoly produces less than the socially optimal level of output because it restricts output to raise prices and maximize profits, leading to underutilization of resources.

When We Say That a Monopoly Does Not Produce a Socially