the fundamental reason a single rise in monopoly creates deadweight loss is
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Inefficiency in a Monopoly
The monopoly pricing creates a deadweight loss because the firm forgoes transactions with the consumers. The deadweight loss is the potential gains that did not go to the producer or the consumer. ... A monopoly is less efficient in total gains from trade than a competitive market
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Explanation:
Inefficiency in a Monopoly
The monopoly pricing creates a deadweight loss because the firm forgoes transactions with the consumers. The deadweight loss is the potential gains that did not go to the producer or the consumer. ... A monopoly is less efficient in total gains from trade than a competitive market.
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