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loss due to marginal cost pricing     Regulating a monopoly so that it is allocatively efficient means that it must practice marginal cost pricing, and in this case must produce output equal to QAE, and sell it at price PAE. If the firm sells this output, its total revenue is QAE x PAE.
Total Revenue is shown as the blue area shown to the right.

    The total cost of producing QAE is QAE x ATCAE.
Total cost is equal to the red area shown. Total costs are greater than total revenues. Even being a monopolist isn't much fun if you're incurring losses.
Loss is shown as the magenta area.

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