Use the Figure Below,which Shows the Linear Demand and Constant

question 44

Multiple Choice

Use the figure below,which shows the linear demand and constant cost conditions facing a firm with a high barrier to entry,to answer the question. $_________ the deadweight loss is caused by the market power created by the high entry barrier

• A)$625,000
• B)$1,000,000
• C)$1,500,000
• D)$2,000,000

---

Definitions:

Good Faith Purchaser

A Good Faith Purchaser is someone who buys property without knowledge of any existing claims or encumbrances against it, thus acquiring legal rights to the property.

Voidable Title

A legal term referring to a situation where a transfer of title to property can be invalidated due to certain circumstances, such as fraud or misrepresentation, giving the affected party the right to void the transaction.

CIF

Cost, Insurance, and Freight, a trade term requiring the seller to arrange for the carriage of goods by sea to a port of destination, and provide the buyer with the documents necessary to obtain the goods.

Voidable Title

A legal status of property ownership that can be declared invalid by one of the parties involved, due to factors such as fraud or coercion at the time of acquisition.