Question

What is the dead-weight loss that results from the monopolization of a market? Who loses this? In other words, does the dead-weight loss come from producer or consumer surplus? Are monopolist’s profits parts of the dead-weight loss? Do the monopoly's profits make up for the loss in producer surplus? And does the additional profit outweigh the deadweight loss in the overall market? Please explain using an example.



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  • CreatedAugust 05, 2013
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