U.S. Department
of Justice
Graph Illustrating The Standard Depiction Of Welfare Loss As A Result Of Monopoly
| This graph illustrates the standard depiction of welfare loss as a result of monopoly. The original quantity produced is reduced, shifting a greater percentage of the surplus to the producers, who are now producing at marginal cost equivalent to marginal revenue. As a result, deadweight loss is created and total welfare decreases. |
Updated June 25, 2015