If the inverse demand curve a monopoly faces is p = 100 - 2Q, and MC is constant at 16, then the deadweight loss from monopoly equals
A) $21.
B) $441.
C) $882.
D) $1,764.
B
You might also like to view...
Refer to the following graphs to answer the question below.
Select the graph above that best shows the changes in demand and supply in the market for music CDs sold in stores, if more consumers switch to music-downloads from the Internet, and the cost of making music CDs decreases because of technological improvement in production.
A. graph (1) B. graph (2) C. graph (3) D. graph (4)
Recessions
a. almost never occur in the American economy. b. follow a regular and predictable cycle. c. are common features of the American economy. d. have been abolished by wise macroeconomic policy.
In the long run the monopolistic competitor
A. charges the same price but produces a greater output than the perfect competitor. B. charges a higher price but produces a smaller output than the perfect competitor. C. charges a higher price and produces a higher output than the perfect competitor. D. charges a lower price and produces a lower output than the perfect competitor.
All government payments to individuals are called transfer payments.
Answer the following statement true (T) or false (F)