When compared to perfect competition, monopoly results in a deadweight loss.

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In a monopoly, the monopolist maximizes profit by producing at a quantity where marginal revenue equals marginal cost, which typically results in a higher price and lower quantity of goods produced compared to perfect competition. This reduction in production creates a deadweight loss, as there are potential trades between buyers and sellers that do not occur, leading to a loss of total surplus in the market.

When Compared to Perfect Competition, Monopoly Results in a Deadweight