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12.20: Outcome- Inefficiencies in Monopolies

Last updated

Aug 7, 2020
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- 12.19: Reading- Illustrating Monopoly Profits
- 13: Module- Monopolistically Competitive Industry

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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.

Authored by: Steven Greenlaw and Lumen Learning. License: CC BY: Attribution

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

LEARNING ACTIVITIES

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