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Economics is the study of the way individuals, firms, government bodies and nations behave and make their choices in allocating the scarce resources in order to satisfy their unlimited and recurring wants. It can be divided into microeconomics and macroeconomics.
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What can one understand from the term deadweight loss of a monopoly?
Deadweight loss of a monopoly is a term used in the study of economics and concerns about a situation where there is excess burden or loss of the economic efficiency that occurs when the equilibrium for a service is not possible to achieve. The causes of deadweight loss can be many including monopoly pricing, taxes, and subsidies. This term can simply mean that there is excess burden of monopoly or taxation. Deadweight loss occurs when the total society welfare in the economy is not maximized. In some cases, the total society welfare might be maximized but has not been the welfare has been divided fairly and equally.
Example- a person might want to drink juice or cold drink as the price of both is Rs. 30, the government but decides to charge tax of some amount of the juice; the person would prefer the cold drink as the excess burden of tax leads to the loss of utility. The deadweight loss of monopoly assignment help team is there to help you at each step.
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