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The Figure Below Shows the Result of a Price Fixing

Question 20

Multiple Choice

The figure below shows the result of a price fixing scheme that raised price above competitive levels at point C to a price of $15 at point M. The figure below shows the result of a price fixing scheme that raised price above competitive levels at point C to a price of $15 at point M. The formation of this cartel caused a deadweight loss to society of $____________ of social surplus. A) $5,000 B) $15,000 C) $20,000 D) $31,250 The formation of this cartel caused a deadweight loss to society of $____________ of social surplus.


A) $5,000
B) $15,000
C) $20,000
D) $31,250

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