The Following Figures Show the Demand and Cost Curves of a Perfectly

question 35

Multiple Choice

The following figures show the demand and cost curves of a perfectly competitive and a monopoly firm respectively. Figure 10.7
D: Average Revenue
AC: Average cost
MC: Marginal cost
MR: Marginal cost
-Calculate the deadweight loss in Figure 10.7,if the perfectly competitive industry is monopolized after it had been producing an output of 10,000 units?

• A)The area P₂ACP₁
• B)The area ABC
• C)The area P₂ABP₁
• D)The distance AB
• E)There is no deadweight loss

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