Which of the following is TRUE?
A) Monopolies produce too much and charge too much from the standpoint of efficiency.
B) Monopolies usually are economically efficient because they have economic profits with which to work.
C) Monopolies produce too little and charge too much from the standpoint of efficiency.
D) Monopolies cause an efficiency problem but are not associated with a deadweight loss.

Question

Quizplus · Accepted Answer

Monopolies produce less than the socially optimal quantity and charge higher prices, leading to allocative inefficiency and a deadweight loss.

Which of the Following Is TRUE