Many economists criticize monopolists because they
A)charge a price that equals marginal cost rather than a price that equals average cost.
B)do not innovate.
C)produce a large quantity of waste.
D)produce less than the socially efficient level of output.

Question

Quizplus · Accepted Answer

Monopolists have the ability to influence market prices and can charge a higher price than would be charged in a competitive market, leading to a reduction in output and a deadweight loss to society. Therefore, monopolists are criticized for producing less than the socially efficient level of output.

Many Economists Criticize Monopolists Because They