blessingstarz60861 blessingstarz60861
  • 20-02-2020
  • Business
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The inefficiency associated with monopoly is due to a the monopoly's profits. b the monopoly's losses. c overproduction of the good. d underproduction of the good.

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BenitoMarin BenitoMarin
  • 21-02-2020

Answer:

The correct answer is letter "D": underproduction of the good.

Explanation:

The Allocative Inefficiency of Monopolies refers to the fact that this type of market could come to a point in which production is lower than demand but the prices are still kept high. This situation opposes perfectly competitive markets where many sellers are offer an average product and there is perfect information about the price of a good.

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