Deadweight Loss for a Monopoly
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By having monopoly power, a firm earns above-normal profits. However, that gain is not enough to offset the combined loss of consumer surplus and producer surplus (deadweight loss 1 and 2, respectively).
Contributed by: Samuel G. Chen (March 2011)
Open content licensed under CC BY-NC-SA
"Deadweight Loss for a Monopoly"
Wolfram Demonstrations Project
Published: March 7 2011