From society's point of view, a monopolist produces too little because price
A) is less than marginal cost.
B) is less than average cost.
C) exceeds average cost.
D) exceeds marginal cost.

Question

Quizplus · Accepted Answer

A monopolist sets the price above marginal cost to maximize profits, leading to less production compared to a competitive market where price equals marginal cost. This results in a deadweight loss to society, as some consumers who value the product more than its marginal cost do not get it.

From Society's Point of View, a Monopolist Produces Too Little