Econ212+Spring2013+Le_Linh+Notes_for_Week_11

The size of the inefficiency can be measured by the

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Unformatted text preview: oly Since a monopolist charges a price in excess of marginal cost, it will produce an inefficient amount of output. The size of the inefficiency can be measured by the deadweight loss—the net loss of consumers’ and the producer’s surplus. V. Deadweight loss of Monopoly VI. Natural Monopoly A natural monopoly occurs when a firm cannot operate at an efficient level o...
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This note was uploaded on 02/25/2014 for the course ECON 212 taught by Professor Mirobins during the Spring '08 term at Mt. Holyoke.

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