Suppose a Patent Is Granted for a Product That Has

question 112

Multiple Choice

Suppose a patent is granted for a product that has the linear demand curve P = a - b Q.The constant marginal cost of producing this product is $50 per unit,a unit sells for $150,and consumers purchase 100 units of the good at that price.If the monopoly is maximizing profit,the deadweight loss is

• A) $5000.
• B) $2500.
• C) $7500.
• D) $10000.

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Definitions:

Self-Serving Bias

A common cognitive bias where individuals attribute their successes to internal factors while blaming external factors for their failures.

Cognitive Component

Refers to the beliefs, thoughts, and knowledge that influence how an individual understands and interacts with the world.

Affective Component

Pertains to the emotional aspect of attitudes, reflecting feelings or emotions related to an object, person, or event.

Behavioural Component

The aspects of psychology related to the actions or reactions of individuals usually in response to external stimuli.