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However, the extent of this welfare loss varies depending on several factors. For instance, in the case of a natural monopoly.  Monopolising a competitive industry doesn’t always result in a higher welfare loss. This is due to the economies of scale. Some goods have average costs that decrease with output over a certain amount of that good, driving lower marginal costs in the long run. The total cost of a single firm producing an output of a particular good incurs less than the costs of several different producing the same output of that particular good (natural monopoly). Having a monopoly take control of the production of the good would be the most cost-effective as if production of output was split among small firms, these firms would produce at a much higher average cost and price than the monopoly. The monopolist is able to produce a higher output and a lower price than under competitive conditions. Thus, although the monopoly is still inefficient, having many small competitive firms produce it would be even more inefficient. Therefore, in this case, the welfare loss would decrease. As s seen in figure 6, if one firm were to produce 20000 outputs, the cost per unit would be 0.50 pounds. However, if two firms were to produce 2000 outputs (10000 each), it would cause 1.50 pounds per unit. Thus, in which case, it would be more cost efficient to have one firm produce, making the good cheaper, resulting in lower welfare loss. 

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In addition, rent-seeking activities also affect the extent of the welfare loss. Rent seeking activities are activities taken by firms to acquire monopoly power. These activities require spending and thus, if firms partake in these activities, their welfare loss increases as these activities represent a social cost of monopoly. The resources used in the rent-seeking activities could have been used in some other productive activity.

Furthermore, this welfare loss may be reduced if the monopoly utilises its profits for research and development, and investments in technology. Firms in competitive industries receive lower abnormal profits or simply normal profits and hence, have less power and incentive to innovate. With high profits, the monopoly can advance technological development that will reduce costs and improve the quality of its goods for consumers which benefits society as a whole, reducing welfare loss.