Principles of Microeconomics / Unit 8 MIC 0724 short lesson, about 20 seconds
The Transfer to the Monopolist
Captions available
The idea
Beside the deadweight loss sits a rectangle: the higher price on units still sold, moved from consumers to the monopolist. A transfer, not a loss; whether it is fair is an equity question.
In practice
Two dollars extra on four thousand doses is eight thousand a week moved to the firm.
Where people slip
Efficiency counts the triangle; equity argues about the rectangle.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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