Multiple Choice
Suppose a patent is granted for a product that has the linear demand curve P = a - b Q.The constant marginal cost of producing this product is $50 per unit,a unit sells for $150,and consumers purchase 100 units of the good at that price.If the monopoly is maximizing profit,the deadweight loss is
A) $5000.
B) $2500.
C) $7500.
D) $10000.
Correct Answer:
Verified
Correct Answer:
Verified
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