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12.9: Outcome: Inefficiencies in Monopolies

  • Page ID
    249398
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    What you’ll learn to do: explain why a monopoly is inefficient using deadweight loss

    In this outcome, you’ll see why monopolies are inefficient. They produce less, at a higher average cost, and charge a higher price than would a combination of firms in a perfectly competitive industry. Because of this, they are neither allocatively or productively efficient.

    Here are some of the specific things you’ll learn to do in this section:

    • Differentiate between a single price monopolist and a price discriminating monopolist

    LEARNING ACTIVITIES

    The learning activities for this section include the following:

    • Reading: The Inefficiency of Monopoly
    • Reading: Monopolies and Deadweight Loss
    • Reading: Price Discrimination
    • Self Check: Inefficiencies in Monopolies

    Take time to review and reflect on each of these activities in order to improve your performance on the assessment for this section.

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    12.9: Outcome: Inefficiencies in Monopolies is shared under a not declared license and was authored, remixed, and/or curated by LibreTexts.

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