Monopolies are inefficient because,at the profit-maximizing output level,
A) MC = MR.
B) MC does not equal MR.
C) MB = MC.
D) MB does not equal MC.
E) P = ATC.

Question

Quizplus · Accepted Answer

Monopolies are inefficient because at the profit-maximizing output level, marginal benefit (MB) does not equal marginal cost (MC). This results in a deadweight loss to society, as the monopoly produces less than the socially optimal quantity.

Monopolies Are Inefficient Because,at the Profit-Maximizing Output Level