What is X-inefficiency? Why is it likely to occur in monopoly?

What will be an ideal response?

X-inefficiency is a situation where a firm’s production costs are greater than the minimum possible costs. If a firm chooses the most efficient technology from existing technologies, then the firm should be able to achieve the minimum average total cost for each level of output. When the firm does not achieve this minimum there is X-inefficiency. X-inefficiency occurs because there are internal problems such as bad management by the firm. If the managers have other goals than cost minimization for the firm, then this divergence of goals can lead to X-inefficiency. Monopoly firms are more prone to X-inefficiency than purely competitive firms because they face no effective price or market pressure to reduce costs at each given level of output.