Use the triangle drawing tool to shade in the dead weight loss created by the monopoly (compared to if the market were perfectly competitive). Properly label this shaded area. Carefully follow the instructions above, and only draw the required objects.

Use the triangle drawing tool to shade in the dead weight loss created by the monopoly (compared to if the market were perfectly competitive). Properly label this shaded area. Carefully follow the instructions above, and only draw the required objects.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter9: Monopoly

Section: Chapter Questions

Problem 12SQP

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Question

Suppose a local utility company provides electricity to a small town. The figure to
the right illustrates the utility company's marginal cost of providing electricity
along with the town's demand for electricity
0.24-
MC
0.22-
Assume the local utility company is a monopoly.
0.2-
0.18-
Use the triangle drawing tool to shade in the dead weight loss created by the
monopoly (compared to if the market were perfectly competitive). Properly label
this shaded area.
* 0.16-
0.14
0.12
Carefully follow the instructions above, and only draw the required objects.
0.1-
8 0.08
0.06
0.04
0.02-
MR
D
0-
10 20 30 40 50 60 70 ' 80 so 100
Quantity of electricity (kilowatt hours in millions)

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