Examples
For example, consider the market for nails where the cost of each nail is 10 cents and the demand would decrease linearly from the high demand for free nails to zero demand for the nails at $1.10. In a perfectly competitive market, producers might have to charge a price of 10 cents and every customer whom marginal benefit exceeds 10 cents could have a nail. However, if there is one producer who has a monopoly on the product, then they will charge whatever the price would yield the greatest profit. So, for this particular market, the producer will charge 60 cents and therefore excludes every customer who has less than 60 cents of the marginal benefit. The deadweight loss is then the economic benefit past by these customers because