Economy, asked by noormohammaad5498, 6 months ago

Reason for inefficiency associated with monopoly

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Answered by Aditi9098
0

Answer:

Allocative Efficiency requires production at Qe where P = MC. ... 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.

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