Figure 15-17

-Refer to Figure 15-17.The deadweight loss caused by a profit-maximizing monopoly amounts to
A) $225.
B) $450.
C) $900.
D) $1,350.

Name: Figure 15-17 -Refer to Figure 15-17.The deadweight loss caused by a profit-maximizing monopoly amounts to A) $225. B) $450. C) $900. D) $1,350.
Brand: Quizplus
Rating: 4.8 (31 reviews)

Question

Figure 15-17
 
-Refer to Figure 15-17.The deadweight loss caused by a profit-maximizing monopoly amounts to
A) $225. 
B) $450. 
C) $900. 
D) $1,350.

Quizplus · Accepted Answer

The deadweight loss is the triangle below the demand curve and above the marginal cost curve. In this case, the triangle has a base of 15 and a height of 30, so the area is (1/2) * 15 * 30 = $225.

Figure 15-17 -Refer to Figure 15-17.The Deadweight Loss Caused by a Profit-Maximizing