Question

How is the dead weight loss from monopoly affected by the slope of the demand curve

Answer 1

Deadweight loss is the lost welfare because of a market failure or intervention. In this case, it is caused because the monopolist will set a price higher than the marginal cost. This means there will be people willing to pay more than the cost of production which will not be able to purchase the good because the monopolist is maximizing profit.

Answer 2

Answer:

Answer :

• $\longmapsto$ Deadweight loss is the lost welfare because of a market failure or intervention. In this case, it is caused because the monopolist will set a price higher than the marginal cost. This means there will be people willing to pay more than the cost of production which will not be able to purchase the good because the monopolist is maximizing profit.