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Economics A Level

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Question:

How can you Identify Deadweight Welfare Loss in a Monopolistic Firm?

Author: go kys



Answer:

-Deadweight Welfare Loss refers to the revenue that the Producer has lost because it has not be Produced, because Consumers would have been prepared to pay for it (Above the Price Equilibrium) -You find this from the Equilibrium Point, where the Equilibrium Price meets MR(A) , and then when the Output that makes A reached AR Curve (B)


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go kys
go kys