In a monopoly, which of the following statements about marginal revenue and barriers to entry best explains how economic efficiency is affected?

In a monopoly, the company is the only seller of a product, which means it can set prices higher than in competitive markets. This leads to a situation where the marginal revenue, or the extra money made from selling one more unit, is lower than the price charged for that unit. Because of this, monopolies often produce less of a good than what would be produced in a competitive market, resulting in fewer choices and higher prices for consumers. Barriers to entry, like high costs or strict regulations, prevent other companies from entering the market and competing, which keeps the monopoly in control. For example, if a single company produces a unique medicine, it can charge a high price, limiting access for patients and reducing overall economic efficiency.