A Monopolist Faces the Inverse Demand Curve P = 60

question 95

Multiple Choice

A monopolist faces the inverse demand curve P = 60 - Q.It has variable costs of Q² so that its marginal costs are 2Q,and it has fixed costs of 30.If a governmental agency imposes an $8 per unit specific tax on output,the deadweight loss from both the monopoly and the tax is

• A) $37.50.
• B) $73.00
• C) $526.50.
• D) $562.50.

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