The profit-maximizing output of a pure monopoly is not socially optimal because in equilibrium:

A) price equals minimum average total cost.
B) marginal revenue equals marginal cost.
C) marginal cost exceeds price.
D) price exceeds marginal cost.

Socially Optimal

A condition or level of operation where social welfare is maximized, considering all costs and benefits to society.

Marginal Cost

The rise in total expenses incurred from the production of an extra unit of a product or service.

Profit-maximizing Output

The level of production at which a firm achieves the highest possible profit, where marginal revenue equals marginal cost.