A monopoly is inefficient because:
A) consumers are forced to pay higher prices for products.
B) firms are able to earn economic profits.
C) the cost of increased production is less than the value that society places on it.
D) price exceeds marginal revenue.

Question

Quizplus · Accepted Answer

A monopoly is inefficient because it produces less than the socially optimal output level, where the cost of increased production is less than the value that society places on it, leading to a deadweight loss.

A Monopoly Is Inefficient Because