Many economists criticize monopolists because they produce at output levels that are not efficient, that is to say, monopolists
A) charge too high a price
B) don't innovate
C) produce a large quantity of waste
D) usually don't produce at their minimum ATC
E) may be profit conscious but they don't realize that maximum profit means maximum efficiency

Question

Quizplus · Accepted Answer

Monopolists produce at output levels that are not efficient because they produce at a quantity where marginal cost is greater than marginal revenue. This means that they are not producing at their minimum ATC, which is the point where marginal cost equals marginal revenue.

Many Economists Criticize Monopolists Because They Produce at Output Levels