-In the above figure suppose there is only one milk producer who chooses to restrict milk production to two million gallons per day. What is the size of the deadweight loss? (Hint: It is equal to the triangular area of consumer and producer surplus that is lost because of the reduction in output.)
A) $12.5 million
B) $6.25 million
C) $2.25 million
D) none of the above

Question

-In the above figure suppose there is only one milk producer who chooses to restrict milk production to two million gallons per day. What is the size of the deadweight loss? (Hint: It is equal to the triangular area of consumer and producer surplus that is lost because of the reduction in output.)
A) $12.5 million 
B) $6.25 million 
C) $2.25 million 
D) none of the above

Quizplus · Accepted Answer

The Answer of 
-In the above figure suppose there is only one milk producer who chooses to restrict milk production to two million gallons per day. What is the size of the deadweight loss? (Hint: It is equal to the triangular area of consumer and producer surplus that is lost because of the reduction in output.)
A) $12.5 million 
B) $6.25 million 
C) $2.25 million 
D) none of the above

-In the Above Figure Suppose There Is Only One Milk