Consider a Profit-Maximising Monopoly Pricing Under the Following Conditions

question 132

Multiple Choice

Consider a profit-maximising monopoly pricing under the following conditions.The profit-maximising price charged for goods produced is $18.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 14 units.The demand curve and marginal-cost curves are linear.What is the deadweight loss?

• A)$6
• B)$24
• C)$48
• D)not enough information is given to answer this question