How can Monopolies create a Market Failure and Misallocation of Resources?

-Usually, the Price and Output would be at a Point where Supply = Demand (AR = AC) -Monopolies though can Misallocate Resources by Restricting Supply to create a Higher Price (MC=MR) -This is Market Failure. Welfare Loss of KLM exists (Fewer Units left for Consumers to Purchase) -Furthermore, Output being Restricted can lead to Economies of Scale being Less of an Impact. Productive Efficiency is not Achieved -Monopolies experience Higher Costs of Production also exists as they may not have an Incentive to Innovate Market Production. They may not Cut Costs as they are Price Makers -Finally, Choice is Restricted on Consumers, and their Wants and Needs will not be noted upon by the Firm, because Price Makers