Table 15-5 -Suppose That a Monopolist Produces Good A.The Profit-Maximizing Quantity Is

question 315

Multiple Choice

Table 15-5

-Suppose that a monopolist produces good A.The profit-maximizing quantity is 40 units,the profit-maximizing price is $160,and the marginal cost of the 40th unit is $120.If good A were produced in a perfectly competitive market,the equilibrium quantity would be 50,and the equilibrium price would be $150.What is the value of the deadweight loss created by the monopolist?

• A) $40
• B) $100
• C) $200
• D) $400

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