Rent seeking dead weight losses

Producers stand to gain the rent rectangle, but political competition for its produces additional social loss from rentseeking (Heckelmann 55) Economic Theory of regulation Regulation is one mechanism govt can use to make rents. which causes rentseeking which leads to rent extraction.

Microeconomics deadweight loss monopoly

The monopoly firm faces the same market demand curve, from which it derives its marginal revenue curve. It maximizes profit at output Q m and charges price P m. Output is lower and price higher than in the competitive solution. Society would gain by moving from the monopoly solution at Q m to the competitive solution at Q c.

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