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Monopoly Markets, Pricing, and Policy — Market Power, Deadweight Loss, and Antitrust Explained | Chapter 15 of Principles of Microeconomics What happens when a single firm dominates a market and controls prices? Chapter 15 of Principles of Microeconomics explores the unique features of monopoly markets, the sources and implications of market power, and the policy debates over how to regulate these firms. This summary helps you understand why monopolies set prices above marginal cost, what causes deadweight loss, and how governments respond through antitrust laws and regulation. 🎥 Watch the full chapter summary below and subscribe to Last Minute Lecture for more textbook breakdowns and academic study guides! What Is a Monopoly and Where Does Market Power Come From? A monopoly is a firm that is the sole seller of a product with no close substitutes. Monopolies arise from three main sources: Monopoly Resources: A firm owns a key resource needed for product...

The Design of the Tax System — Efficiency, Equity, and Tax Policy Explained | Chapter 12 of Principles of Microeconomics What makes a good tax system, and how do economists weigh efficiency against equity? Chapter 12 of Principles of Microeconomics examines the core goals and trade-offs of tax policy. This summary provides a clear guide to the structure of the U.S. tax system, the main principles of tax design, and the challenges of balancing fairness with minimizing economic distortions. 🎥 Watch the full chapter summary below and subscribe to Last Minute Lecture for more textbook breakdowns and study guides! Tax Structure and the U.S. System Taxes are crucial for funding public goods and services, from national defense to infrastructure. The U.S. tax system includes personal income taxes, payroll taxes, and corporate income taxes. Each is designed to raise revenue while attempting to limit inefficiency and ensure fairness. Principles of Tax Design: Efficie...

The Costs of Taxation — Deadweight Loss, Tax Wedge, and the Laffer Curve Explained | Chapter 8 of Principles of Microeconomics How do taxes impact market efficiency and economic welfare? Chapter 8 of Principles of Microeconomics explores the costs of taxation—unpacking why even necessary taxes can lead to unintended market distortions and welfare losses. This summary explains the concept of deadweight loss, the creation of a tax wedge, and the broader implications for government policy, revenue, and growth. 🎥 Watch the full chapter summary below and subscribe to Last Minute Lecture for more textbook breakdowns and academic study guides! How Taxes Affect Markets: The Tax Wedge and Deadweight Loss When a tax is imposed on a good, it creates a tax wedge —the difference between what buyers pay and what sellers receive. This wedge causes fewer trades to occur, reducing overall market activity and creating a deadweight loss : a loss of total surplus that would have...