Monopoly Is Allocatively Inefficient Because

Multiple Choice

Monopoly is allocatively inefficient because

A) the price exceeds the marginal cost of the last unit produced.
B) the opportunity cost exceeds the marginal cost of the last unit produced.
C) the marginal cost exceeds the average cost for the last unit produced.
D) lower costs could be achieved.
E) the firm has no incentive to maximize profits.