Monopolies are socially inefficient because the price they charge is a. equal to marginal revenue. b. above marginal cost. c. equal to demand. d. above demand.

Respuesta :

Monopolies are known be be socially inefficient because the price that they charge for ther product equals to marginal revenue..

Why are Monopolies socially inefficient?

They are inefficient because their pricing method lead to a deadweight loss because they mostly forgoes transactions with the consumers.

Also, they become less innovative over time as they do nit have competitiors in a marketplace.

Therefore, the Option A is correct.

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