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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