-The above figure shows the demand and cost curves facing a monopoly.The deadweight loss of this monopoly is
A) $100.
B) $250.
C) $1,250.
D) $2,500.

Question

-The above figure shows the demand and cost curves facing a monopoly.The deadweight loss of this monopoly is
A) $100. 
B) $250. 
C) $1,250. 
D) $2,500.

Quizplus · Accepted Answer

The deadweight loss in a monopoly is the loss of economic efficiency when the equilibrium outcome is not achievable or not achieved. It is calculated as the area of the triangle formed between the demand curve, the marginal cost curve, and the quantity produced by the monopoly. In this case, the deadweight loss is $1,250.

-The Above Figure Shows the Demand and Cost Curves Facing