Monopoly brings many social problems and monopoly loss has always been the focus of scholars. However

there is difference between hypothesis premise and reality. The existing research theories such as the famous Harberger triangle

X-inefficiency theory and Tullock rectangle can not value the monopoly loss precisely. The existing research theories develop from static and average market environment while the real market is constantly changing. The change of time and knowledge brings series of changes. Therefore

these existing theories don’t conform to the realities and can not value monopoly loss. Taking the existing disadvantages as warning and putting monopoly into the real market

we can explain the occurrence and dying of monopoly along with the change of time

knowledge and preference. Meanwhile

we can find out how monopoly inhibits innovation. In one aspect

innovation can create huge residual for consumers and producers; in the other aspect

owning to the existence of monopoly

the amount of loss may be lager. Through analysis

we find that the real loss of monopoly especially the one who relies on the power authorized by government is the innovation unimplemented.