Monopoly leads to an inefficient level of the production of goods.This means that
A) the total social benefit is not as high as it could be.
B) the monopolist's production costs are higher than necessary.
C) government tax collected from the monopolist is less than it might be.
D) externalities are not as large as they should be.
E) fewer people are employed than might be.

Question

Quizplus · Accepted Answer

Monopolies have the power to restrict output and charge higher prices, which leads to less production than would occur in a competitive market. As a result, the total social benefit is not as high as it could be, indicating an inefficient allocation of resources.

Monopoly Leads to an Inefficient Level of the Production of Goods.This