If a marginal cost pricing rule is imposed on the firm in the figure above, the deadweight loss will be
A) zero.
B) $100.
C) $200.
D) $50.

Name: If a marginal cost pricing rule is imposed on the firm in the figure above, the deadweight loss will be A) zero. B) $100. C) $200. D) $50.
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Question

Quizplus · Accepted Answer

Marginal cost pricing leads to an efficient allocation of resources, eliminating deadweight loss by setting price equal to marginal cost.

If a Marginal Cost Pricing Rule Is Imposed on the Firm