949 Views

illustrated the dead weight loss under monopoly.does it exist in case of perfect competition as well.


Arsh Bawa 19th Apr, 2020
Answer (1)
mjaisinghani62 19th Apr, 2020

Hello aspirant

Deadweight Loss , the monopolists produces a quantity such  that marginal revenue equals marginal cost. The price is determined by demand curve at this quantity. A monopoly makes a profit equal to the total revenue minus total cost ..

A monopolistically competitive market is inefficient. Since a monopolistic competitive firm has powers over the market that are similar to a monopoly . It's profit maximising level of production will result in a net loss of consumer and producer  surplus, creating deadweight Loss.

Related Questions

Amity University, Noida Law A...
Apply
700+ Campus placements at top national and global law firms, corporates and judiciaries
Amity University, Noida BBA A...
Apply
Ranked amongst top 3% universities globally (QS Rankings)
MAHE Online MBA
Apply
Apply for Online MBA from Manipal Academy of Higher Education (MAHE)
Great Lakes Institute of Mana...
Apply
Admissions Open | Globally Recognized by AACSB (US) & AMBA (UK) | 17.8 LPA Avg. CTC for PGPM 2026
Amity University | M.Tech Adm...
Apply
Ranked amongst top 3% universities globally (QS Rankings).
IBSAT 2025-ICFAI Business Sch...
Apply
IBSAT 2025-Your gateway to MBA/PGPM @ IBS Hyderabad and 8 other IBS campuses | Scholarships worth 10 CR
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books