A Monopolist Faces Inverse Demand $P = 400 - 4 Q ^ { d }$

question 31

Multiple Choice

A monopolist faces inverse demand $P = 400 - 4 Q ^ { d }$ and has constant marginal cost $M C = 80$ . If this monopolist changes from a policy of uniform pricing to a policy of first-degree price discrimination, deadweight loss will decrease by:

• A) 0
• B) 1,600
• C) 3,200
• D) 12,800