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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Definitions:

Dunmore

Refers to Lord Dunmore's Proclamation of 1775, where the British colonial governor of Virginia promised freedom to slaves who left their Patriot masters to fight for the British.

Continental Army

The revolutionary war army, authorized by the Continental Congress in 1775, led by General George Washington, that fought against British forces during the American Revolutionary War.

George Washington

The first President of the United States, known for leading the American revolutionary forces to victory and setting many precedents for future presidents.

Enlistment

The act of voluntarily joining a military force, often by signing a legal document committing oneself to service for a certain period of time.