Table 10-4 Shakti Inc

question 35

Multiple Choice

Table 10-4
$\begin{array}{|c|c|c|}\hline \begin{array}{c}\text { Price per } \\\text { Dose }\end{array} & \begin{array}{c}\text { Quantity Demanded } \\\text { (dose) }\end{array} & \begin{array}{c}\text { Total Cost of } \\\text { Production } \\\text { (dollars) }\end{array} \\\hline \$ 80 & 0 & \$ 80 \\\hline 72 & 1 & 82 \\\hline 64 & 2 & 88 \\\hline 56 & 3 & 100 \\\hline 48 & 4 & 124 \\\hline 40 & 5 & 164 \\\hline 32 & 6 & 208 \\\hline 24 & 7 & 268 \\\hline 16 & 8 & 340 \\\hline\end{array}$ Shakti Inc. has been granted a patent for its Arnica toothache balm. Table 10-4 shows the demand and the total cost schedule for the firm.
-Refer to Table 10-4.What is the amount of the deadweight loss generated by Shakti when it produces the monopoly output?

• A) $124
• B) $42
• C) $36
• D) $12

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