The Figure Below Shows the Result of a Price Fixing

question 27

Multiple Choice

The figure below shows the result of a price fixing scheme that raised price above competitive levels at point C to a price of $15 at point M. Answer Questions using this figure
-The formation of this cartel caused a deadweight loss to society of $____________ of social surplus.

• A) $5,000
• B) $15,000
• C) $20,000
• D) $31,250

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