The following figure shows the marginal revenue curve [MR],the demand curve,and the marginal cost curve [MC] for a monopolist with constant costs.
Figure 15-2
-Suppose that the market in Figure 15-2 were served by an oligopoly such that the equilibrium output was 450.Then the welfare loss would be _____ as compared to the welfare loss of _____ under monopoly.
A)$37.50;$150
B)$75;$150
C)$37.50;$450
D)$75;$450

Question

The following figure shows the marginal revenue curve [MR],the demand curve,and the marginal cost curve [MC] for a monopolist with constant costs.
Figure 15-2 
-Suppose that the market in Figure 15-2 were served by an oligopoly such that the equilibrium output was 450.Then the welfare loss would be _____ as compared to the welfare loss of _____ under monopoly.
A)$37.50;$150 
B)$75;$150 
C)$37.50;$450 
D)$75;$450

Quizplus · Accepted Answer

The Answer is A

The Following Figure Shows the Marginal Revenue Curve [MR],the Demand