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Social Cost of monopoly | Deadweight loss in monopoly in Hindi | allocative efficiency in monopoly
SOCAL COST OF MONOPOLY
Under perfect competition, allocative efficiency occurs because the price is equal to marginal cost and the sum of consumer surplus and producer surplus is maximum but under monopoly allocative inefficiency occurs because the price is more than marginal cost. The firm produces less than its capacity and charges a higher price. There is a deadweight loss that exists under Monopoly
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