The Welfare Cost of Monopoly e In contrast to a competitive firm, the monopoly charges a price above the marginal cost o From the standpoint of consumers this high price makes monopoly undesirable However, from the standpoint of the owners of the firm, the high price makes monopoly very desirableThe Welfare Cost of Monopoly • In contrast to a competitive firm, the monopoly charges a price above the marginal cost. • From the standpoint of consumers, this high price makes monopoly undesirable. • However, from the standpoint of the owners of the firm, the high price makes monopoly very desirable