The Marginal Cost of a Monopolist Is Constant and Is

question 34

Multiple Choice

The marginal cost of a monopolist is constant and is $10. The demand curve and marginal revenue curves are given as follows: demand: Q = 100 - P
Marginal revenue: MR = 100 - 2Q
The deadweight loss from monopoly power is:

• A) $1000.00.
• B) $1012.50.
• C) $1025.00.
• D) $1037.50.
• E) none of the above

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Definitions:

Journal

A detailed record where all financial transactions of a business are initially recorded, before being transferred to the general ledger.

Posting Reference

A notation or code that links journal entries to the corresponding ledger accounts, facilitating tracking and reviewing of financial transactions.

Journal Page Number

The specific page number in a journal where transactions are recorded, aiding in tracking and referencing financial activities.

Account Number

A unique sequence of numbers assigned to a customer's account in the books of a financial institution.