Scenario 14-4 Suppose a Monopolist Has a Demand Curve That Can Be

question 299

Multiple Choice

Scenario 14-4
Suppose a monopolist has a demand curve that can be expressed as P=90-Q.The monopolist's marginal revenue curve can be expressed as MR=90-2Q.The monopolist has constant marginal costs and average total costs of $10.
-Refer to Scenario 14-4.The profit-maximizing monopolist will have a deadweight loss of

• A) $6,400.
• B) $3,200.
• C) $1,600.
• D) $800.

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