-The above figure illustrates a single-price unregulated monopolist. If the monopolist maximizes its profit, the deadweight loss equals
A) $10,000.
B) $20,000.
C) $45,000.
D) $40,000.

Question

-The above figure illustrates a single-price unregulated monopolist. If the monopolist maximizes its profit, the deadweight loss equals
A) $10,000. 
B) $20,000. 
C) $45,000. 
D) $40,000.

Quizplus · Accepted Answer

The deadweight loss is the triangle below the demand curve and above the marginal cost curve. In this case, the deadweight loss is $10,000.

-The Above Figure Illustrates a Single-Price Unregulated Monopolist