Multiple Choice
The following figure shows the marginal cost [MC],marginal revenue [FH] and demand [FG] curves for a monopolist who faces constant costs.
Figure 15-1 ![The following figure shows the marginal cost [MC],marginal revenue [FH] and demand [FG] curves for a monopolist who faces constant costs. Figure 15-1 -Refer to Figure 15-1.Given that P<sub>1</sub>= $100,P<sub>2</sub> = $50,Q<sub>2</sub>= 2,000 units,and Q<sub>1</sub>=1,000 units,what is the deadweight loss of a monopoly? A) $10,000 B) $2,000 C) $50,000 D) $25,000](https://d2lvgg3v3hfg70.cloudfront.net/TB1825/11ea77e2_d74c_f309_91bf_c7e5ec2a2b7b_TB1825_00.jpg)
-Refer to Figure 15-1.Given that P1= $100,P2 = $50,Q2= 2,000 units,and Q1=1,000 units,what is the deadweight loss of a monopoly?
A) $10,000
B) $2,000
C) $50,000
D) $25,000
Correct Answer:
Verified
Correct Answer:
Verified
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