Respuesta :
The deadweight loss due to monopoly pricing would then be the financial advantage foregone with the aid of customers with a marginal gain of between $0.10 and $0.60 per nail.
Do monopoly generates a deadweight loss?
The monopoly pricing creates a deadweight loss because the association forgoes transactions with the consumers. Monopolies can turn out to be inefficient and less progressive over time because they do no longer have to compete with other producers in a marketplace. In the case of monopolies, abuse of energy can lead to market failure.
What is the monopoly formula?
MR = [1/Ed]P + P. MR = P(1 + 1/Ed) This is a beneficial equation for a monopoly, as it hyperlinks the rate elasticity of demand with the rate that maximizes profits.
Learn more about deadweight loss created by the monopolist here:
