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Write your responses in complete sentences. Each answer should be two - three paragraphs (150 –...

Write your responses in complete sentences. Each answer should be two - three paragraphs (150 – 250 words) in length.

1. What is the social cost of a monopoly? How is it measured?

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Answer #1
  • The result of having a monopolistic market as opposed to a competitive market is restricted output and a higher price.
  • Monopoly creates a social cost, called a deadweight loss, because some consumers who would be willing to pay for the product up to its marginal cost (MC), are not served.

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