Explain why a certain triangular area is a measure of the deadweight loss of monopoly. What information do you require in order to calculate the size…

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Explain why a certain triangular area is a measure of the deadweight loss of monopoly. What information do you require in order to calculate the size of this triangle?

Answer:Deadweight loss is the inefficiency caused by monopoly pricing, tax, price ceilings or pricefloors. The diagram below shows the deadweight loss caused by tax, deadweightloss caused by…

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