Monopoly has social costs because A. P is greater than MC and this implies economic inefficiency. B. too few resources are being used in the monopoly industry and too many are used elsewhere. C. a monopoly produces less and charges a higher price than a perfectly competitive firm would producing the same product or service. D. All of the above.

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Business

Cristopher Mccoy

24 December, 22:22

Monopoly has social costs because A. P is greater than MC and this implies economic inefficiency. B. too few resources are being used in the monopoly industry and too many are used elsewhere. C. a monopoly produces less and charges a higher price than a perfectly competitive firm would producing the same product or service. D. All of the above.

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Answers (1)

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Freeway · Answer 1

Option "D" is the correct answer to the following question.

Explanation:

A monopoly usually has all kinds of social costs. Price under monopoly is more than marginal cost, which also often means that society does not have the economic capacity.

In monopoly business, resources are usually used less and other businesses use more resources, which is why monopoly business is usually associated with social interests.

Monopoly businesses produce fewer goods but charge more on those goods because they are the sole producers of the services or goods they produce, so all three options are correct