Consider the Monopoly in the Figure Below with Price Regulated

question 1

Multiple Choice

Consider the monopoly in the figure below with price regulated at $2 per unit.Deadweight loss resulting from the unregulated monopoly price is _________ than the deadweight loss resulting from the regulated price.

• A) greater
• B) less
• C) no different
• D) There is insufficient information to determine the difference in the deadweight loss between the regulated and unregulated prices.

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