The figure given below represents a perfectly competitive market in long-run equilibrium.LRS represents the long-run supply curve of this market with demand (D) and price $50.When two large firms merge, output declines to 400 units and per unit production cost drops to $30.

-Refer to Figure .Which of the following regions in the figure represents the deadweight loss resulting from the merger?
A)Area of triangle APR
B)Area of the square BCPQ
C)Area of the triangle BQR
D)Area of triangle ACB

Question

The figure given below represents a perfectly competitive market in long-run equilibrium.LRS represents the long-run supply curve of this market with demand (D) and price $50.When two large firms merge, output declines to 400 units and per unit production cost drops to $30.

-Refer to Figure .Which of the following regions in the figure represents the deadweight loss resulting from the merger?

-Refer to Figure .Which of the following regions in the figure represents the deadweight loss resulting from the merger?
A)Area of triangle APR 
B)Area of the square BCPQ 
C)Area of the triangle BQR 
D)Area of triangle ACB

Quizplus · Accepted Answer

The Answer of The figure given below represents a perfectly competitive market in long-run equilibrium.LRS represents the long-run supply curve of this market with demand (D) and price $50.When two large firms merge, output declines to 400 units and per unit production cost drops to $30.

-Refer to Figure .Which of the following regions in the figure represents the deadweight loss resulting from the merger?
A)Area of triangle APR 
B)Area of the square BCPQ 
C)Area of the triangle BQR 
D)Area of triangle ACB

The Figure Given Below Represents a Perfectly Competitive Market in Long-Run