A Monopolist Faces Inverse Demand $P = 400 - 4 Q ^ { d }$

question 25

Multiple Choice

A monopolist faces inverse demand $P = 400 - 4 Q ^ { d }$ and has constant marginal cost $M C = 80$ . If this monopolist changes from a policy of uniform pricing to a policy of first-degree price discrimination, deadweight loss will decrease by:

• A)0
• B)1,600
• C)3,200
• D)12,800

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Definitions:

Relativistic

Pertaining to the concept that points of view have no absolute truth or validity, having only relative, subjective value according to differences in perception and consideration.

Pragmatic Thought

A mode of thinking concerned with practical matters and the application of ideas and theories to solve problems or achieve goals.

Reflective

Thoughtful consideration of one's experiences and actions.

Autonomous

Having the freedom to govern oneself or to act independently without being controlled by others.