Deadweight Loss for a Monopoly
Deadweight Loss for a Monopoly
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).
Permanent Citation
Permanent Citation
Samuel G. Chen
"Deadweight Loss for a Monopoly"
http://demonstrations.wolfram.com/DeadweightLossForAMonopoly/
Wolfram Demonstrations Project
Published: March 7, 2011