The social cost attached to monopolies is reflected by the fact that
A) monopolies produce more output than consumers desire to buy.
B) consumers pay prices that exceed the marginal cost of production.
C) the demand for a monopolist's product is always lower than the demand for the products of perfectly competitive firms.
D) consumers are always willing to pay lower prices for a monopolist's product than for the products of perfectly competitive firms.

Question

Quizplus · Accepted Answer

The social cost attached to monopolies is that consumers pay prices that exceed the marginal cost of production. Monopolies have the power to charge higher prices and restrict output. This leads to a misallocation of resources and consumers paying more than they should, which is a social cost.

The Social Cost Attached to Monopolies Is Reflected by the Fact