-The output produced by the single-price, unregulated monopoly in the above figure is
A) efficient because profit is maximized.
B) inefficient because less than the efficient quantity is produced.
C) efficient because marginal costs equals marginal revenue.
D) inefficient because more than the efficient quantity is produced.

Question

-The output produced by the single-price, unregulated monopoly in the above figure is
A) efficient because profit is maximized. 
B) inefficient because less than the efficient quantity is produced. 
C) efficient because marginal costs equals marginal revenue. 
D) inefficient because more than the efficient quantity is produced.

Quizplus · Accepted Answer

A single-price, unregulated monopoly is inefficient because it produces less than the efficient quantity, where marginal cost equals marginal benefit, leading to a deadweight loss.

-The Output Produced by the Single-Price, Unregulated Monopoly in the Above