935 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
UPES Integrated LLB Admission...
Apply
Ranked #28 amongst Institutions in India by NIRF | Ranked #1 in India for Academic Reputation by QS University Rankings | 16.6 LPA Highest CTC
Great Lakes PGPM & PGDM 2025
Apply
Admissions Open | Globally Recognized by AACSB (US) & AMBA (UK) | 17.3 LPA Avg. CTC for PGPM 2024 | Extended Application Deadline: 10th Jan 2024
Amity University Noida B.Tech...
Apply
Among Top 30 National Universities for Engineering (NIRF 2024)
ISBR Business School PGDM Adm...
Apply
250+ Companies | Highest CTC 16 LPA | Average CTC 8 LPA | Ranked as Platinum Institute by AICTE for 6 years in a row | Awarded Best Business School...
Chandigarh University Admissi...
Apply
Ranked #1 Among all Private Indian Universities in QS Asia Rankings 2025 | Scholarships worth 210 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