If one of the agents in an Edgeworth Box has monopoly power and maximizes profit as the sole seller, then the economic outcome is:

A) inefficient because the monopoly has no incentive to be technically efficient.
B) inefficient because the monopoly produces less than the optimal amount of output.
C) Both A and B are correct.
D) none of the above

Edgeworth Box

A diagram used in economics to show the efficient distribution of resources between two individuals or markets, based on their preferences and endowments.

Monopoly Power

It is the ability of a single seller or producer to control prices and total market output.

Optimal Output

The level of production that maximizes a firm's profits or minimizes its costs, depending on the context.