The deadweight loss for a monopolist equals one-half of its profits for any given level of output.

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Deadweight loss for a monopolist does not necessarily equal one-half of its profits for any given level of output. Deadweight loss refers to the loss of economic efficiency when the equilibrium outcome is not achievable or not achieved. In the case of monopoly, it arises because the monopolist produces less than the socially optimal output level and charges a higher price than in a competitive market, but the size of the deadweight loss is not directly tied to the size of the monopolist's profits in a fixed proportion.

The Deadweight Loss for a Monopolist Equals One-Half of Its