Sub-optimal allocation of resources under monopoly, which causes social welfare loss, is often inferred as:

Correct option is A

Deadweight loss occurs in a monopoly when prices are set above the competitive level, leading to reduced consumer surplus and inefficiency. Monopolists restrict output to maximize profits, causing underproduction and preventing optimal resource allocation.
Information Booster
· Deadweight loss represents lost efficiency in markets.
· Occurs in monopolies, taxation, price controls, and externalities.
· Measured as the area between demand and supply curves.
· It signifies a loss to society as potential gains are not realized.
· Reducing monopolistic power improves economic efficiency.
· Government interventions like antitrust laws help control deadweight loss.
Additional Information
· Allocation drift ( Incorrect) is not a recognized economic term.
· Monopoly loss ( Incorrect) is vague and does not describe inefficiency properly.
· Opportunity loss ( Incorrect) refers to forgone alternatives, not market inefficiencies.