Consider a Profit-Maximizing Monopoly Pricing Under the Following Conditions

question 62

Multiple Choice

Consider a profit-maximizing monopoly pricing under the following conditions. The profit-maximizing price charged for goods produced is $12.The intersection of the marginal revenue and marginal cost curves occurs where output is 10 units and marginal cost is $6. The socially efficient level of production is 12 units. The demand curve and marginal cost curves are linear. What is the value of the deadweight loss created by the monopolist?

• A)$4
• B)$6
• C)$12
• D)$16

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