Which of the following statements are true regarding allocative efficiency in monopolies? Select all that apply.

Allocative efficiency happens when resources are distributed in a way that maximizes the total benefit to society. In a monopoly, the company controls the market and can set higher prices than in competitive markets, which often leads to less production and fewer choices for consumers. This means that monopolies usually do not achieve allocative efficiency because they restrict output to increase their profits, resulting in a loss of consumer welfare. For example, if a single company sells a unique video game at a high price, fewer people can afford it, and some might miss out on the enjoyment it could bring. Therefore, monopolies typically fail to reach allocative efficiency since they do not produce enough goods at the lowest price that would benefit the most people.