Suppose a monopoly firm has an annual demand function of Qd = 20,000 - 250P, annual variable costs of VC = 16Q + 0.002Q2 and marginal cost of MC = 16 + 0.004Q, where Q is the annual quantity of output. In addition, the firm has an avoidable fixed cost of $25,000 per year. If this firm maximizes its profit, what is the value of the deadweight loss caused by this monopoly?
A. $242,000
B. $55,250
C. $30,250
D. $5,250
C. $30,250
Economics
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The multiple changes in income and output that results from a change in autonomous expenditure is called the multiplier
Indicate whether the statement is true or false
Economics
What will the value of $18,000 be in 10 years if the current interest rate is 12%?
A) $5,795.52 B) $39,600.00 C) $40,579.20 D) $55,905.27
Economics