Principles of Microeconomics / Unit 8 MIC 0722 short lesson, about 20 seconds
The Deadweight Loss of Monopoly
Captions available
The idea
The deadweight loss of monopoly is the surplus lost on the units between the monopoly and competitive quantities: a triangle between demand and marginal cost over that range.
In practice
For the medicine, the triangle from four thousand to six thousand doses.
Where people slip
It is the same triangle as a tax's or a ceiling's; every failure to reach price equals marginal cost has one.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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