-For the single-price monopoly shown in the figure above, the deadweight loss is
A) zero.
B) between $0 and $10.
C) between $10.01 and $20.
D) more than $20.01.

Question

-For the single-price monopoly shown in the figure above, the deadweight loss is
A) zero. 
B) between $0 and $10. 
C) between $10.01 and $20. 
D) more than $20.01.

Quizplus · Accepted Answer

In a single-price monopoly, the deadweight loss is the loss of economic efficiency when the equilibrium outcome is not achieved. It is typically calculated as the area of the triangle formed between the demand curve and the marginal cost curve, from the monopoly quantity to the competitive quantity. The given range suggests that this area is between $10.01 and $20.

-For the Single-Price Monopoly Shown in the Figure Above, the Deadweight