Monopoly Is Allocatively Inefficient Because

question 66

Multiple Choice

Monopoly is allocatively inefficient because

• A)the price exceeds the marginal cost of the last unit produced.
• B)the opportunity cost exceeds the marginal cost of the last unit produced.
• C)the marginal cost exceeds the average cost for the last unit produced.
• D)lower costs could be achieved.
• E)the firm has no incentive to maximize profits.

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