-In the above figure, for a single-price monopoly the deadweight loss is equal to the area
A) bce.
B) bed.
C) abP1.
D) P1beP3.
E) acP2.

Question

-In the above figure, for a single-price monopoly the deadweight loss is equal to the area
A) bce. 
B) bed. 
C) abP1. 
D) P1beP3. 
E) acP2.

Quizplus · Accepted Answer

The deadweight loss in a monopoly is the loss of economic efficiency when the equilibrium outcome is not achieved. In the context of a single-price monopoly, it is represented by the area between the demand curve and the marginal cost curve, over the quantity range where the monopoly restricts output. This corresponds to area bce.

-In the Above Figure, for a Single-Price Monopoly the Deadweight