Monopoly is not considered desirable from the point of view of the society mainly because the…

Monopoly is considered socially undesirable from an allocative and productive efficiency standpoint because even when a monopolist earns only normal profit (AR = AC), the downward-sloping demand curve is tangent to the falling portion of the Average Cost curve—meaning the monopolist restricts output and produces below the optimum economic capacity level (where AC is minimum).