Monopolists are criticised because they are inefficient. What is meant by this statement?
A) Monopolists charge too high a price.
B) Monopolists don't innovate enough to control pollution.
C) Monopolists produce a large quantity of waste.
D) Monopolists usually don't produce at the minimum of the ATC.

Question

Quizplus · Accepted Answer

Monopolists usually do not produce at the minimum of the average total cost (ATC), which means they are not allocating resources efficiently. They have more control over the market, and they can increase their profits by producing output levels that are lower than the efficient output level. As a result, society loses the benefits of having resources allocated efficiently, resulting in lower overall economic welfare.

Monopolists Are Criticised Because They Are Inefficient