Explain the meaning of inefficiency in this context

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Economists sometimes say that monopoly is "inefficient". Explain the meaning of "inefficiency" in this context. Show analytically how this inefficiency comes about. Under what conditions will such inefficiency tend to be greater? Under what conditions will such inefficiency tend to be reduced? (Hint: Discuss the distinction between “rent-seeking” and “profit-seeking”). (8-10 sentences)

Reference no: EM131093003

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