The above figure shows the demand and cost curves facing a monopoly. The deadweight loss of this monopoly is
A) $100.
B) $250.
C) $1,250.
D) $2,500.
C
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Starting from long-run equilibrium, an increase in autonomous consumption results in ________ output in the short run and ________ output in the long run.
A. higher; higher B. higher; potential C. lower; higher D. lower; potential
How do car dealers help reduce adverse selection?
What will be an ideal response?
According to prospect theory,
A) people are concerned with wealth levels only. B) people are concerned with changes in wealth levels only. C) people never use a reference level when making their decisions. D) everybody is risk-neutral.
How does Professor Tabarrok describe a situation in which someone receives a gift that they don't value?
A. The incentive problem B. Negative trade C. The knowledge problem D. Negative charity