Consider the Monopoly in the Figure Below with Price Regulated

question 15

Multiple Choice

Consider the monopoly in the figure below with price regulated at $2 per unit. The deadweight loss under the regulated price is:

• A) $4.50.
• B) $5.
• C) $8.
• D) There is insufficient information to compute the deadweight loss at the regulated price.

---

Definitions:

Calf Bulge

The appearance of an enlarged or prominent portion of the calf muscle on the back of the lower leg.

Gastrocnemius

A major muscle in the calf of the leg, involved in walking, running, and jumping.

Soleus

A powerful muscle in the calf of the leg that is involved in standing and walking, lying beneath the gastrocnemius muscle.

Sternocleidomastoid

The sternocleidomastoid is a muscle in the neck that runs from the sternum and clavicle to the mastoid process of the temporal bone, involved in head movement.