How would many economists view inefficiency in oligopoly?

Question

Quizplus · Accepted Answer

Inefficiency in oligopoly occurs when firms produce less than the socially optimal level of output because they make decisions based on their own self-interest rather than the overall welfare of society. This leads to a situation where price (P) is greater than marginal cost (MC) and also greater than the minimum average total cost (ATC), as firms are operating on the upward sloping portion of their cost curves. Therefore, choice D (P > MC and P > minimum ATC) is the correct answer.

How Would Many Economists View Inefficiency in Oligopoly