Gwhich of the following statements is a major criticism of a pure monopoly as a source of allocative inefficiency? rev: 05_15_2018 multiple choice a pure monopoly fails to expand output to the level where the price of an additional unit is just equal to its marginal cost. a pure monopoly has no incentive to produce efficiently, because even the inefficient pure monopoly can be assured of economic profits. a pure monopoly will always generate economic profit, and that means that prices are too high. a pure monopoly has an unfair advantage because it can purchase labor at a lower price than perfectly competitive firms can.