Use the Following Figure to Answer the Question : Figure

question 73

Multiple Choice

Use the following figure to answer the question : Figure 12-1 : shows the downward sloping demand and marginal revenue [MR] curves of a monopolist. The MR curve intersects the marginal cost [MC] curve at point B. MC is constant at the P₁.

-Refer to Figure 12-1. If the monopolist perfectly price discriminates, deadweight loss will be equal to:

• A)area P₃AP₂.
• B)area P₃CP₁.
• C)area ABC.
• D)zero.

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