Without restrictions, the market supply curve is horizontal at P = 5, and the inverse demand curve for taxi cab rides is P = 20 - Q in a competitive market. Subsequently, only 10 taxi cabs are allowed in the market

This results in a deadweight loss of A) 0.
B) 5.5.
C) 12.5.
D) 25.

C

Economics

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If the bidders at a first-price auction have true values of $78, $72, $66, and $65, the item will sell for

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