A7) Suppose that a monopolist has a marginal cost of 4. Suppose that the market demand is Q(P) = 12 –P. Assuming that the monopoly maximizes its profit, what is the resulting deadweight loss? a) 25 b) 0 c) 5 d) 14 e) none of the above

A7) Suppose that a monopolist has a marginal cost of 4. Suppose that the market demand is Q(P) = 12 –P. Assuming that the monopoly maximizes its profit, what is the resulting deadweight loss? a) 25 b) 0 c) 5 d) 14 e) none of the above

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A7) Suppose that a monopolist has a marginal cost of 4. Suppose that the market demand is
Q(P) = 12 -P. Assuming that the monopoly maximizes its profit, what is the resulting
deadweight loss?
a) 25
b) 0
c) 5
d) 14
e) none of the above

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