Is a single-price monopoly efficient?
A) Yes, because it creates a deadweight loss.
B) No, because it creates a deadweight loss.
C) Yes, because consumers gain and producers lose some of their surpluses.
D) Yes, because consumers lose and producers gain some of their surpluses.
E) Yes, because it produces the quantity at which MR = MC.

Question

Quizplus · Accepted Answer

A single-price monopoly is not efficient because it does not produce at the point where price equals marginal cost, leading to a deadweight loss. This loss represents the net benefits to society that are not realized due to the monopolist's decision to restrict output to maximize profits.

Is a Single-Price Monopoly Efficient