Figure 15-5 The Figure Below Depicts the Demand, Marginal Revenue and Marginal

question 53

Multiple Choice

Figure 15-5
The figure below depicts the demand, marginal revenue and marginal cost curves of a profit-maximizing monopolist.

-Refer to Figure 15-5.Which of the following areas represents the deadweight loss due to monopoly pricing?

• A)Triangle bde
• B)Triangle bge
• C)Rectangle acdb
• D)Rectangle cfgd

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Definitions:

Ending Balance

The final amount in an account at the end of an accounting period, reflecting all transactions.

Discontinued Operation

A component of a business that has been sold, abandoned, or otherwise disposed of, which is reported separately from continuing operations on financial statements.

Income Statement

A financial report that shows a company's revenues, expenses, and profit over a particular period.

Retirement of a Bond

The repayment of the principal amount of a bond at or before its maturity date, effectively extinguishing the debt.