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Question 101

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Use the following to answer question:
Figure: Demand and Marginal Revenue Use the following to answer question: Figure: Demand and Marginal Revenue -(Figure: Demand and Marginal Revenue) Use Figure: Demand and Marginal Revenue.The figure refers to a software upgrade.The producer incurred fixed costs of $10 million to produce the upgrade;the marginal cost of allowing consumers to download the upgrade is zero.What is the deadweight loss associated with the profit-maximizing price and quantity of the upgrade? A) $0 B) $1.25 million C) $3.125 million D) $6.25 million
-(Figure: Demand and Marginal Revenue) Use Figure: Demand and Marginal Revenue.The figure refers to a software upgrade.The producer incurred fixed costs of $10 million to produce the upgrade;the marginal cost of allowing consumers to download the upgrade is zero.What is the deadweight loss associated with the profit-maximizing price and quantity of the upgrade?


A) $0
B) $1.25 million
C) $3.125 million
D) $6.25 million

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