AP® Microeconomics · Unit 4 · Topic 4.2
Monopoly Profit and Deadweight Loss
Watch it explained
- How it worksHow do the profit rectangle and the deadweight loss triangle sit on the same monopoly graph?
- Worked exampleFind profit and deadweight loss when P = 100 - 2Q, MC is 20, and ATC at that output is 35.
- How it worksShow me the consumer surplus a monopolist captures and the part that simply disappears.
- Common mistakeWhy isn't the deadweight loss of a monopoly just the profit it takes from consumers?
- Going furtherWhat happens to deadweight loss when the monopolist's marginal cost curve slopes upward?
Check yourself
Your turn1 of 2
A monopolist sells 154 units at a price of 39 dollars, with average total cost of 17 dollars. What is the monopolist's total profit, in dollars?End of topic.