The allocative inefficiency of nondiscriminating monopoly arisesfrom the fact th

The allocative inefficiency of nondiscriminating monopoly arisesfrom the fact that:A)price exceeds marginal costB)output falls short of the output at which average cost isminimizedC)output exceeds that at which average cost is minimizedD)price exceeds minimum average costFeedback: Allocative efficiency requires that output be producedwhere price (the value consumers place on the next unit of output)just equals marginal cost (the value society places on other thegoods and services sacrificed to produce it.) Since price exceedsmarginal cost in monopoly too little output is produced to achieveallocative efficiency.