-In the above figure,for a single-price monopoly the deadweight loss is equal to the area
A) abP?.
B) acP?.
C) bce.
D) bed.
E) P?beP?.

Question

-In the above figure,for a single-price monopoly the deadweight loss is equal to the area
A) abP?. 
B) acP?. 
C) bce. 
D) bed. 
E) P?beP?.

Quizplus · Accepted Answer

Deadweight loss in a monopoly setting is represented by the area of the triangle formed by the demand curve, the marginal cost curve, and the quantity produced by the monopolist. This area is denoted by bce, which captures the loss in social surplus due to the monopolist's production and pricing decisions.

-In the Above Figure,for a Single-Price Monopoly the Deadweight Loss