Monopolies are socially inefficient because the price they charge is
A)equal to marginal revenue.
B)above marginal cost.
C)equal to demand.
D)above demand.

Name: Monopolies are socially inefficient because the price they charge is A)equal to marginal revenue. B)above marginal cost. C)equal to demand. D)above demand.
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Question

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Monopolies are socially inefficient because they charge a price that is above marginal cost, which leads to a reduction in consumer surplus and an inefficient allocation of resources.

Monopolies Are Socially Inefficient Because the Price They Charge Is