From society's point of view, a monopolist produces too little because price

A) is less than marginal cost.
B) is less than average cost.
C) exceeds average cost.
D) exceeds marginal cost.

Question

From society's point of view, a monopolist produces too little because priceA)  is less than marginal cost.B)  is less than average cost.C)  exceeds average cost.D)  exceeds marginal cost.

Brody Frederick · Accepted Answer

Final Answer : D, Explanation :  A monopolist sets the price above marginal cost to maximize profits, leading to less production compared to a competitive market where price equals marginal cost. This results in a deadweight loss to society, as some consumers who value the product more than its marginal cost do not get it.

From society's point of view, a monopolist produces too little because price

A) is less than marginal cost.
B) is less than average cost.
C) exceeds average cost.
D) exceeds marginal cost.

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