The fundamental reason a single- price monopoly creates a deadweight loss is that compared to the efficient outcome, the single- price monopoly

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A single-price monopoly creates a deadweight loss primarily because it restricts output below the level that would be produced in a competitive market. This restriction of output results in less trade and thus a loss of economic efficiency, as some consumers who value the product more than its marginal cost are not able to purchase it.

The Fundamental Reason a Single- Price Monopoly Creates a Deadweight