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A Monopolist Faces Inverse Demand P=4004QdP = 400 - 4 Q ^ { d }

Question 25

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A monopolist faces inverse demand P=4004QdP = 400 - 4 Q ^ { d } and has constant marginal cost MC=80M C = 80 . If this monopolist changes from a policy of uniform pricing to a policy of first-degree price discrimination, deadweight loss will decrease by:


A) 0
B) 1,600
C) 3,200
D) 12,800

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