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.
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
Your main post must be two to three substantive paragraphs 150 to 200 total words and include at least two APA-formatted citations/references.