Figure 15-10
-Refer to Figure 15-10.The deadweight loss due to a monopoly is represented by the area

Question

Figure 15-10 
-Refer to Figure 15-10.The deadweight loss due to a monopoly is represented by the area

Quizplus · Accepted Answer

The deadweight loss due to a monopoly is represented by the area FHE. This is because the monopoly restricts output to Q1, which is less than the competitive output of Q2. This restriction leads to a higher price (P1) than the competitive price (P2), and a loss of consumer surplus (area FGE) and producer surplus (area GEH).

Figure 15-10 -Refer to Figure 15-10.The Deadweight Loss Due to a Monopoly