Assume a Monopolist Can Prevent Resale of Its Product and It

question 92

Multiple Choice

Assume a monopolist can prevent resale of its product and it has complete information about each one of its customers. Even though each customer has a different demand curve, the seller can identify each customer's demand curve before a purchase takes place. It faces the inverse market demand of P = 160 - 10Q with marginal cost of MC = 10 + 5Q. The deadweight loss at the profit-maximizing result is $____.

• A) 500
• B) 400
• C) 200
• D) 0

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Definitions:

Cervical Smear

A medical test, also known as a Pap smear, used to detect pre-cancerous and cancerous cells in the cervix.

Wet Mount

A laboratory technique in which a liquid sample is placed between a slide and cover slip to observe under a microscope.

Menarche

The first menstrual period.

Menstruation

Cyclic endometrial shedding and discharge of a bloody fluid from the uterus during the menstrual cycle.