Why do monopolies lead to social costs in the market?

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Because marginal cost equals marginal revenueSince the price falls below the marginal costBecause the marginal benefit to consumers is less than the marginal revenueDue to insufficient production combined with excessively high prices

Explanation

Monopolies create social costs primarily because they produce less output than is socially optimal while charging prices that are higher than the marginal cost, leading to inefficiency in the market.