PERFECT COMPETITION AND MONOPOLIES (3.2). On Graph 2, identify the deadweight loss that occurs as a result of Auckland Airport being a monopoly. Welfare in a market includes the welfare of both consumers and producers. The transfer of surplus from consumers to producers is therefore not a social loss. The deadweight loss from monopoly stems from the fact that monopolies produce less than the socially efficient level of output. Which areas on the graphs below represent loss to consumers as a result of the. Calculate the deadweight loss associated with the monopoly situation shown.
Dead Weight Loss Monopoly Graphing: