 welfare effects of imperfect competition. तब हम ने हम welfare effects की बाज कहतें so basically for the measurement of the welfare effects हम use करते है producer surplus and consumer surplus. और हम ने producer surplus को defyne कीः आता के it is the area that lies above to the supply curve but below to the market equilibrium price. धिस तर हम ने consumer surplus को defyne कीः आता area that lies below to demand curve त्ब at above to the equilibrium price. जब when you talk about equilibrium in perfect competition, यह त्हब at equilibrium level of the output, थ्ब at equilibrium level of the output, प्रईस aus equal to mar oraz is equal to marginal cost. जब when you talk about imperfect competition त्ब at the optimal level of the output, औपके your total of the output यह अपकोई is not minimum. यह। औब at the optimal level of the output, सब आपकोई क्या ब्र इज्छ ती at of the average cost that is not minimum. आप यहआआ पे ववो आपग़ के खूँच़िया पात्त होगी Secretary Payas Sar mem p toward NO PARTREIT सुच़िया पबचे कुनचम्या जहॉँच्य doing,NO जो हम ने कुऽदना थे कुदुमर से बस्ःपह majority,St면 and noll यह ज़े �エडे अणowned to A,B,C,D,E,F,G,H if farmer is producing under if market is operating under perfectly competitive market then the consumer surplus will be a plus b plus c plus d plus e when you talk about producer surplus for a market operating under perfectly competitive market then I will have f g h but when we say that a farmer is operating under perfectly competitive market then I have firms equilibrium by equating marginal revenue and marginal cost and you can say that the margin revenue that I have, its slope is always greater than demand curve and in this diagram I am denoting the marginal revenue with red line and I have labeled it as marginal revenue and at which point the equilibrium level of output will be, equilibrium level of output will be determined at a point where marginal revenue intersects the marginal cost and this is the marginal cost of the firm that operate under imperfectly competitive market and here equilibrium level of output will be, I have q i c and against q i c level of output, firm will charge the price is equal to p i c and now this area you have below to the demand curve but above to the price that is charged in the market it will indicate to you consumer surplus and in this case what will happen, under imperfect competition consumer surplus is equal to a b when you go to the producer surplus then that producer surplus is area that lies below to price that is charged in the market and above to the supply curve then you will have c d f g but now here there is a certain area that does not go neither towards the consumer side nor towards the producer side that is e h and this is the loss in economic welfare and this loss in economic welfare is because of production under imperfectly competitive market structure that when output is produced under imperfectly competitive market it has welfare effects on the society that when you operate under imperfectly competitive market there is loss in economic welfare of the society because when you define economic welfare of the society it is equal to consumer surplus per plus producer surplus but we have observed in that diagram that there is decrease in economic welfare why did the decrease in economic welfare happen because of the operation because of the production of the level of output under imperfectly competitive market and the loss you had we call that is the dead weight loss dead weight loss is the cost of the society created by the market in efficiency and how do we define efficiency that efficiency is basically a level of output where average cost of the firm is minimum and buyer is paying minimum price against the optimal level of the output and if your market is operating out of equilibrium out of equilibrium demand is not equal to supply then there is a dead weight loss imperfect competition always results in loss of the welfare of the society under imperfect competition there is increase in producer surplus but there is a decrease in consumer surplus and along with that there is a decrease in total economic surplus and now if I summarize all that a farmer is making production under imperfectly competitive market it results in welfare loss of the welfare loss of society in society neither consumer and producer as a whole they will make the society and if farmer is making production under imperfectly competitive market there is a loss economic loss to the welfare of the society