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Exhibit 9-15 Why Might the True Deadweight Loss from a Nondiscriminating

Question 158

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Exhibit 9-15 Exhibit 9-15   Why might the true deadweight loss from a nondiscriminating monopolist be less than the loss indicated in Exhibit 9-15? A) The monopolist might have diseconomies of scale B) The monopolist might charge lower prices to discourage competition C) The monopolist might engage in rent seeking D) The monopolist might advertise more to maintain its position E) The monopolist may face diminishing marginal returns Why might the true deadweight loss from a nondiscriminating monopolist be less than the loss indicated in Exhibit 9-15?


A) The monopolist might have diseconomies of scale
B) The monopolist might charge lower prices to discourage competition
C) The monopolist might engage in rent seeking
D) The monopolist might advertise more to maintain its position
E) The monopolist may face diminishing marginal returns

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