Market Diagram The Following Questions Refer to the Accompanying Market Diagram. PC

question 45

Multiple Choice

Market Diagram

The following questions refer to the accompanying market diagram. PC and QC are the equilibrium price and quantity if the firm behaves competitively, and PM and QM are the equilibrium price and quantity if the firm is a simple monopoly.

-Refer to the market diagram.Relative to the surplus achieved under perfect competition,how much surplus is lost (deadweight loss) when there is a monopoly?

• A) E
• B) H
• C) E + H
• D) D + G + E + H