Use the Following Information to Answer the Next Question: the Marginal

question 40

Multiple Choice

Use the following information to answer the next question: 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:

Government

A system or group of people governing an organized community, often a state.

Product

A good, idea, method, information, object, or service created as a result of a process and serves a need or satisfies a want.

Elastic Demand

A situation where the quantity demanded of a good or service significantly changes in response to a change in price.

Unitary Elastic

A situation where the percentage change in quantity demanded is equal to the percentage change in price, indicating a proportional relationship.