Question

Is monopoly productively and allocatively efficient ?

Answer 1

Answer:

Explanation:

The Allocative Inefficiency of Monopoly. ... Thus, monopolies don't produce enough output to be allocatively efficient. Thus, consumers will suffer from a monopoly because it will sell a lower quantity in the market, at a higher price, than would have been the case in a perfectly competitive market.

Answer 2

A monopoly will produce less output and sell at a higher price to maximize profit at Qm and Pm. Thus, monopolies don't produce enough output to be allocatively efficient.