Suppose demand for a product is Q = 100 - P and that the product's marginal cost is equal to average cost at $35. If the monopolist's profit-maximizing price is $60, then consumer surplus is deadweight loss is -- and A. $800; $0 B. $800: $312.5O C. $1,600; $312.50 D. $1,600; $1,000
Suppose demand for a product is Q = 100 - P and that the product's marginal cost is equal to average cost at $35. If the monopolist's profit-maximizing price is $60, then consumer surplus is deadweight loss is -- and A. $800; $0 B. $800: $312.5O C. $1,600; $312.50 D. $1,600; $1,000
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Suppose demand for a product is Q = 100 -
Pand that the product's marginal cost is
equal to average cost at $35. If the
monopolist's profit-maximizing price is $60,
then consumer surplus is
deadweight loss is
%3D
and
A. $800; $0
B. $800: $312.50
C. $1,600; $312.50
D. $1,600; $1,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6d12db0f-5dad-47e7-9af2-4dcff10d5ab1%2F7cdba2c3-e678-497d-a45b-0f4cbb39a09f%2F5uknocn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose demand for a product is Q = 100 -
Pand that the product's marginal cost is
equal to average cost at $35. If the
monopolist's profit-maximizing price is $60,
then consumer surplus is
deadweight loss is
%3D
and
A. $800; $0
B. $800: $312.50
C. $1,600; $312.50
D. $1,600; $1,000
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