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
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The _________________________ hold claims to the interest on borrowed funds that are secured by individuals, businesses and property.
Fill in the blank(s) with the appropriate word(s).
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