The figure at right shows the demand and marginal cost curves for a monopoly. The deadweight loss of this monopoly equals
A. C
B. c+f.
C. h
D. c+d+e+f.
Answer: B. c+f.
The deadweight loss is the area which decreases the surplus from social efficient.
Here the Deadweight loss is c+f
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Tsintah weaves traditional Navaho rugs. She weaves and sells 50 rugs. Her average cost of production per rug is $50 . She sells each rug for a price of $65 . Tsintah's total revenues are
a. $750. b. $2,500. c. $3,250. d. $5,750.
Expected value is:
A. the sum of all probabilities of all possible outcomes of a future event occurring. B. the average probability of all possible outcomes of a future event occurring, weighted by each possible outcome individually. C. the average of each possible outcome of a future event, weighted by its probability of occurring. D. None of these statements is true.