If one of the agents in an Edgeworth Box has monopoly power and maximi

If one of the agents in an Edgeworth Box has monopoly power and maximizes profit as the sole seller, then the economic outcome is:

A) inefficient because the monopoly has no incentive to be technically efficient.
B) inefficient because the monopoly produces less than the optimal amount of output.
C) Both A and B are correct.
D) none of the above

 

ANSWER

B

 

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