Is Monopoly Really Bad?
Hi Everyone,
Here's a video offering some interesting points about the good & bad about monopoly:
http://www.youtube.com/watch?v=qdRGUaTHVig
So does the need to maintain its monopoly really force the monopolist to behave itself?
What exactly is a deadweight loss?
Cheers!
Jian Wei
Here's a video offering some interesting points about the good & bad about monopoly:
http://www.youtube.com/watch?v=qdRGUaTHVig
So does the need to maintain its monopoly really force the monopolist to behave itself?
What exactly is a deadweight loss?
Cheers!
Jian Wei
posted by sexys6c at
8:22 AM
2 Comments:
Deadweight loss is the loss to society (unrealised gain) that is not obtained as a result of overproducing or underproducing certain goods or services. If you compare monopoly to perfect comp, the former has deadweight loss to society because they fail to produce enough to society (allocative inefficiency).
Very cheeem stuff.
Thanks! I guess we're much clearer about this deadweight loss that's really just about what could've been obtained but wasn't obtained at the end.
But what kind of "loss" (monetary?)
So if the economy is allocative efficient, there won't be deadweight loss?
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