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How monopoly creates deadweight loss?

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A market structure where there is only one firm in the industry is called as monopoly. Due to the this it is unlikely that such a firm will take price as given. Instead it will use its influence and choose price and output where it can maximize profit. read more

A monopoly creates a deadweight loss by not supplying at a price where marginal costs equal to demand. This only occurs in perfectly competitive markets and all other markets contain some sort of deadweight loss . Monopolies supply at a quantity where MC=MR and then select the corresponding quantity on the demand curve. read more

A monopoly creates a deadweight loss to society because it earns both short-run and long-run positive economic profits. False By selling hardcover books to die-hard fans and paperback books to less enthusiastic readers, the publisher is able to price discriminate and raise its profits. read more

Charges a price that is above the marginal cost, not everybody in society values the good enough to buy it at that high of a price. read more

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Pure Monopoly: Economic Effects
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