Consider a monopoly where the inverse demand for its product is given by P = 50 ? 2Q. Total costs for this monopolist are estimated to be C(Q) = 100 + 2Q + Q2. At the profit-maximizing combination of output and price, deadweight loss is:
A. $32.
B. $128.
C. $64.
D. cannot be determined with the given information.
Answer: A
You might also like to view...
Which of the following is not an interest-earning asset of commercial banks?
a. Required reserves. b. Checkable deposits. c. Customer savings accounts. d. All of the above are interest-earning assets of commercial banks. e. None of the above are interest-earning assets of commercial banks.
Accounting profit will always be
A) more than economic profit. B) equal to sunk costs. C) less than economic profit. D) equal to implicit costs.
The demand for labor is called a "derived demand" because it is:
A. derived from the demand for the products it is used to produce. B. affected by the demand for consumer products workers produce. C. affected by the price of consumer products workers produce. D. All of these
Real business cycle theory assumes complete price and wage flexibility.
Answer the following statement true (T) or false (F)