The Following Figure Shows the Marginal Revenue Curve [MR],the Demand

question 55

Multiple Choice

The following figure shows the marginal revenue curve [MR],the demand curve,and the marginal cost curve [MC] for a monopolist with constant costs.
Figure 15-2
-Refer to Figure 15-2.Since there is a positive deadweight loss from monopoly,which of the following statements must be true?

• A)The gain in producer surplus should not exceed $450.
• B)The loss in total surplus should be lesser than or equal to $300.
• C)The loss in consumer surplus should not exceed $600.
• D)The gain in total surplus should exceed the loss in consumer surplus.

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Definitions:

People First Philosophy

An approach that focuses on the individual and his or her abilities rather than limitations.

Handicapped

A term traditionally used to describe a person having a physical or mental condition that limits movements, senses, or activities, though “disabled” is now more commonly used to avoid offensive connotations.

Referring To People

The act or process of mentioning or alluding to individuals in speech or writing.

Pay-Per-Service

A pricing model where customers pay for each individual service they receive rather than a subscription or a bundled package.