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The deadweight loss associated with a monopoly occurs because the monopolist produces an output less than the socially optimal level.
A monopoly is an economic structure where a specific person or enterprise is the only supplier of a particular good.
The above means that company that exists in a market with little to no competition and can therefore set its own terms and prices when facing consumers, making them highly profitable.
Hence, the deadweight loss associated with a monopoly occurs because the monopolist produces an output less than the socially optimal level.
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