Consider the same monopoly situation as in the previous question. The deadweight loss (compared to a single firm behaving as if it were perfectly competitive)is about
A)667
B)333
C)1,000
D)1,333

Question

Quizplus · Accepted Answer

The deadweight loss is the difference between the consumer surplus and producer surplus in a monopoly compared to a perfectly competitive market. In this case, the deadweight loss is about 667.

Consider the Same Monopoly Situation as in the Previous Question