Graph 15-6 This graph depicts the demand, marginal-revenue and marginal-cost curves of a profit-maximising monopolist.Use the graph to answer the following question(s).
-Refer to Graph 15-6.What is the deadweight loss equal to when the monopolist does NOT price discriminate?

Question

Graph 15-6  This graph depicts the demand, marginal-revenue and marginal-cost curves of a profit-maximising monopolist.Use the graph to answer the following question(s).
-Refer to Graph 15-6.What is the deadweight loss equal to when the monopolist does NOT price discriminate?

Quizplus · Accepted Answer

Deadweight loss in the case of a monopolist who does not price discriminate is represented by the area of the triangle formed by the monopolist's price and quantity and the demand curve, which is area CEF. This area represents the loss in total surplus due to the monopolist producing less than the socially optimal quantity.

Graph 15-6 This Graph Depicts the Demand, Marginal-Revenue and Marginal-Cost