这家公司设定价格的方式，减少了消费者剩余，增加了生产者剩余。垄断企业具有市场力量，能够收取高于边际成本的价格。如果像悉尼水务公司这样的垄断企业完全行使垄断权力，那么就必然会出现经济效率低下的机会。当垄断企业在市场上收取更高的价格，生产更少的产品时，就会出现经济效率低下。消费者剩余的减少被垄断企业捕获为生产者剩余，其中一部分成为无谓损失。上述数字代表了垄断企业如悉尼水务公司的经济效率低下。这里边际收入曲线(MR)和需求曲线是向下倾斜的。边际收入低于需求曲线。垄断量Q m等于边际收益和边际成本Mc，但垄断价格Pm高于边际成本。与完全竞争行业相比，垄断行业的费用(Pm)更高，产量(Q m)也更低，而完全竞争行业的价格(Pc)和产量(Qc)相同。更好的收费通过与矩形(A)和三角形(B)相同的区域来减少消费者剩余。客户剩余中的一些折扣通过垄断作为制造商剩余来获取，一些变成了无谓损失，即位置等于三角形(B)和(C)。像悉尼水务公司这样的垄断公司，由于缺乏竞争对手，有能力自行定价。垄断企业通常会设定较高的价格，通过生产较低的产品来赚取经济利润。这导致经济效率低下。因此，可以通过政府干预来控制造成经济效率低下的垄断权力。政府管制垄断是为了降低过高的价格，保证企业达到最低的服务标准，防止滥用垄断权力.
This firm sets a price in a way, that reduces consumer surplus and increases the producer surplus. Monopoly firm has a market power which enables them to charge a price greater than marginal cost (MC). If a monopoly firm as Sydney water corporation exercises monopoly power fully, then there definitely arises a chance of economic inefficiencies. Economic inefficiency occurs when a monopoly firm charges a higher price and produces a smaller quantity in the market place. The decrease in consumer surplus is captured by monopoly firm as producer surplus and some of them becomes deadweight loss Above figure represents the economic inefficiency of monopoly firm as Sydney water corporation. Here marginal revenue curve(MR) and demand curve are sloping down wards. Marginal revenue lies below demand curve.The monopoly quantity(Q m) equates marginal revenue and marginal cost(Mc), but the monopoly price(Pm) is higher than the marginal cost. A monopoly expenses a better charge, (Pm), and produces a smaller amount, (Q m), than a perfectly competitive industry, which prices price (Pc) and produces the amount (Qc). The better charge reduces consumer surplus by means of the region same to rectangle (A) and triangle (B). Some of the discount in client surplus is captured through the monopoly as manufacturer surplus and a few turns into deadweight loss ,which is the location equals to triangles (B) and (C).A monopoly firm as Sydney water corporation has a capacity to set the price by themselves as because of lack of their competitors. Monopoly firm usually sets higher price with a view to earn economic profit by producing the lower output. This results in economic inefficiency. Thus, the government intervention may be used to control the monopoly power causing economic inefficiency. Government regulates monopoly in order to reduce the excess prices, to ensure that the firm meets minimum standard of service and to prevent the abuse of monopoly power