Figure 14-17
-Refer to Figure 14-17.The deadweight loss caused by a profit-maximizing monopoly amounts to

Question

Figure 14-17 
-Refer to Figure 14-17.The deadweight loss caused by a profit-maximizing monopoly amounts to

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. In this case, the deadweight loss is calculated as the area of the triangle formed between the demand curve and the marginal cost curve, from the monopoly quantity to the socially optimal quantity. The given choice of $225 likely represents this area.

Figure 14-17 -Refer to Figure 14-17.The Deadweight Loss Caused by a Profit-Maximizing