Graph 15-5 This Graph Depicts the Demand, Marginal-Revenue and Marginal-Cost

question 94

Multiple Choice

Graph 15-5 This graph depicts the demand, marginal-revenue and marginal-cost curves of a profit-maximising monopolist.Use the graph to answer the following question(s) .
-Refer to Graph 15-5.Which of the following areas represents the deadweight loss due to monopoly pricing?

• A)rectangle ACDB
• B)rectangle CFGD
• C)triangle BDE
• D)triangle BGE

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Secondary Effects

Unintended consequences or outcomes that arise from a primary action or decision.

Unintended Consequences

Outcomes that are not the ones foreseen and intended by a purposeful action, often contrary to the original intentions.

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