The Efficient Level of output Price Marginalcost Value Cost te buvers monopolist Value to Cost to buvers Demand monopolist (value to buyers) 0 Efficient Quantity quantity value to buyers is greater value to buyers is less than than cost to seller cost to sellerPrice 0 Quantity Marginal cost Demand (value to buyers) Efficient quantity Cost to monopolist Value to buyers Value to buyers Cost to monopolist Value to buyers is greater than cost to seller. Value to buyers is less than cost to seller. The Efficient Level of Output