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How much is the deadweight​ loss?

​$enter your response here

To calculate the deadweight loss (DWL) from the graph, we need to understand the areas of inefficiency caused by market distortions (e.g., monopolistic pricing). Here's a step-by-step guide to solving this using the graph you've provided:

### Step 1: Identify key points
From the graph, the curves you provided include:
- **Demand curve (D)**
- **Marginal Revenue (MR) curve**
- **Marginal Cost (MC) curve**

### Step 2: Find equilibrium points
- **Monopoly equilibrium**: Where the **MR** curve intersects the **MC** curve. This happens at a **quantity of 30** and **price of 60**.
- **Perfect competition equilibrium**: Where the **Demand (D)** curve intersects the **MC** curve. This happens at a **quantity of 60** and a **price of 30**.

### Step 3: Deadweight loss area
Deadweight loss is the triangular area between the **Demand (D)** and **MC** curves from the **monopoly quantity** (30) to the **competitive quantity** (60). We can calculate the area of this triangle using the formula:

\[
\text{DWL} = \frac{1}{2} \times \text{Base} \times \text{Height}
\]

- **Base**: Difference in quantity between the competitive market and monopolistic market, which is $ 60 - 30 = 30 $.
- **Height**: Difference in price between the demand curve and marginal cost at those quantities. The price at 30 units (monopoly quantity) is 60, and the price at 60 units (competitive quantity) is 30, so the height is $ 60 - 30 = 30 $.

### Step 4: Calculate DWL
\[
\text{DWL} = \frac{1}{2} \times 30 \times 30 = \frac{1}{2} \times 900 = 450
\]

Thus, the deadweight loss (DWL) is **450**.

Would you like further clarification on any part of this solution?

### 5 Related Questions:
1. How does deadweight loss affect consumer surplus in monopolies?
2. What are some other causes of deadweight loss in markets besides monopolies?
3. Can deadweight loss be completely eliminated in real-world markets?
4. How would the deadweight loss change if the marginal cost curve shifted?
5. What are some examples of deadweight loss in non-economic contexts?

### Tip:
Deadweight loss indicates lost economic efficiency, which occurs when the equilibrium for a good or service is not achieved or is distorted by market conditions like taxation or monopoly pricing.

Learn how to calculate deadweight loss in a monopoly market using demand, marginal cost, and marginal revenue curves. This example includes a detailed step-by-step solution, with formulas to compute deadweight loss.

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