Scenario 15-3
Suppose a monopolist has a demand curve that can be expressed as P=90-Q.The monopolist's marginal revenue curve can be expressed as MR=90-2Q.The monopolist has constant marginal costs and average total costs of $10.
-Refer to Scenario 15-3.The profit-maximizing monopolist will have a deadweight loss of
A) $6,400.
B) $3,200.
C) $1,600.
D) $800.
Correct Answer:
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Suppose a monopolist has a demand
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