Suppose a profit-maximizing monopolist faces a constant marginal cost of 20 dollars produces an output level of 100 units,and charges a price of 50 dollars.The socially efficient level of output is 200 units.Assume that the demand curve and marginal revenue curve are the typical downward-sloping straight lines.The monopoly deadweight loss equals 1,500 dollars.

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The deadweight loss in a monopoly is calculated as the area of the triangle formed between the demand curve and the marginal cost curve from the monopolist's output level to the socially efficient output level. Given the price, marginal cost, and output levels, the deadweight loss can be calculated as 0.5 * (Price - Marginal Cost) * (Socially Efficient Output - Monopolist's Output) = 0.5 * (50 - 20) * (200 - 100) = 1,500 dollars.

Suppose a Profit-Maximizing Monopolist Faces a Constant Marginal Cost of 20