Figure 15-5
The figure depicts the demand, marginal-revenue, and marginal-cost curves of a profit-maximizing monopolist.

-Refer to Figure 15-5.Which area represents the deadweight loss due to monopoly pricing

Question

Figure 15-5
The figure depicts the demand, marginal-revenue, and marginal-cost curves of a profit-maximizing monopolist.
 
-Refer to Figure 15-5.Which area represents the deadweight loss due to monopoly pricing

Quizplus · Accepted Answer

Triangle bge represents the deadweight loss due to monopoly pricing because it represents the loss of consumer surplus and producer surplus that occurs when a monopoly sets a price above marginal cost.

Figure 15-5 the Figure Depicts the Demand, Marginal-Revenue, and Marginal-Cost Curves of Curves