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 .Calculate the value of the deadweight loss resulting from the horizontal merger?
A)$800
B)$600
C)$400
D)$300

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 .Calculate the value of the deadweight loss resulting from the horizontal merger?

-Refer to Figure .Calculate the value of the deadweight loss resulting from the horizontal merger?
A)$800 
B)$600 
C)$400 
D)$300

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 .Calculate the value of the deadweight loss resulting from the horizontal merger?
A)$800 
B)$600 
C)$400 
D)$300

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