Explain why a certain triangular area is a measure of the deadweight loss of monopoly. What information do you require in order to calculate the size of this triangle?© BrainMass Inc. brainmass.com October 10, 2019, 12:22 am ad1c9bdddf
Dead weight loss occurs as the monopoly producer produces at a lower quantity and charges a higher price from the consumers. Thus, monopoly is producing at a level lower than the pareto-optimal point and hence deadweight loss. ...
A deadweight loss of monopoly is depicted.