Under a monopoly, resources are misallocated such that
A) too few resources are used in other industries, and too many are used by the monopoly.
B) too few resources are used by the monopoly, and too many are used elsewhere.
C) resources are being used as efficiently as possible only by the monopoly.
D) consumers are being forced to pay a price below the MC of the monopolist.

Question

Quizplus · Accepted Answer

Under a monopoly, the monopolist restricts output to maximize profits, leading to underallocation of resources in the monopolized industry and overall inefficiency.

Under a Monopoly, Resources Are Misallocated Such That