Assignment: Monopoly Markets
A loss in social welfare is caused because a monopoly market produces a smaller output than that of a perfectly competitive market. A monopolist produces too little output at a higher price.
This concept of "underproduction" has been the topic of many research studies, concluding that if markets would deviate from a perfectly competitive market structure, it may cause a lack of economic efficiency.
Research the term monopoly underproduction and:
• Summarize the reasons behind such a claim.
• In your research, explain "the deadweight loss" concept.
Provide specific examples to help support your discussion.
Directions to student: The final paragraph (three or four sentences) of your initial post should summarize the one or two key points that you are making in your initial response. You will be writing three or more discussion posts per week. Your main post must be two to three substantive paragraphs 150-200 total words and include at least two APA-formatted citations/references.
Monopoly and Natural Monopoly
• Research the terms, monopoly and natural monopoly, and post a scholarly definition of each term.
• Compare and contrast the social costs and benefits of a monopoly.
• Provide at least two options for the society to consider when dealing with a natural monopoly
Directions to student: The final paragraph (three or four sentences) of your initial post should summarize the one or two key points that you are making in your initial response. You will be writing three or more discussion posts per week. Your main post must be two to three substantive paragraphs 150-200 total words and include at least two APA-formatted citations/references.