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Deadweight loss

Studies have concluded that the deadweight loss of monopoly power in the US is less than 0.5 percent of GNP. From your knowledge of the determinants of the deadweighlt loss, explain why such a small figure is plausible.

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Studies have concluded that the deadweight loss of monopoly power in the US is less than 0.5 percent of GNP. From your knowledge of the determinants of the deadweight loss, explain why such a small figure is plausible.
In a normal monopoly the monopolist sets one price for all customers and produces lower quantity of goods at sells hem at a higher price than what would have been sold in perfect competition. This is a condition in which the prices are kept high artificially. In other words, customers who value the product more than its marginal cost are ...

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