If the Inverse Demand Curve a Monopoly Faces Is P

question 109

Multiple Choice

If the inverse demand curve a monopoly faces is p = 100 - 2Q,and MC is constant at 16,then the deadweight loss from monopoly equals

• A) $21.
• B) $441.
• C) $882.
• D) $1,764.

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Definitions:

Growing Annuity

A series of periodic payments that grow at a constant rate and are received for a finite number of periods.

Perpetuity

A type of annuity that pays a fixed amount of money to an investor at regular intervals indefinitely.

Present Value

Present value is the current worth of a future sum of money or stream of cash flows given a specified rate of return, reflecting the time value of money.

Present Value

The value today of a future money sum or cash flow stream, determined by a specified return rate.