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-The Figure Above Shows the Market for Umbrellas in Sunville

Question 51

Multiple Choice

-The figure above shows the market for umbrellas in Sunville. Suppose one firm owns all umbrella stores in Sunville and charges $40 per umbrella. In this situation, the market for umbrellas is A) efficient, with no deadweight loss but also no surplus. B) inefficient, with a deadweight loss of $2,666.67. C) inefficient, with a deadweight loss of $1,333.33. D) efficient, generating a total surplus of more than $10,000.
-The figure above shows the market for umbrellas in Sunville. Suppose one firm owns all umbrella stores in Sunville and charges $40 per umbrella. In this situation, the market for umbrellas is


A) efficient, with no deadweight loss but also no surplus.
B) inefficient, with a deadweight loss of $2,666.67.
C) inefficient, with a deadweight loss of $1,333.33.
D) efficient, generating a total surplus of more than $10,000.

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