The Following Figures Show the Demand and Cost Curves of a Perfectly

Multiple Choice

The following figures show the demand and cost curves of a perfectly competitive and a monopoly firm respectively. Figure 10.7
D: Average Revenue
AC: Average cost
MC: Marginal cost
MR: Marginal cost
-Calculate the deadweight loss in Figure 10.7,if the perfectly competitive industry is monopolized after it had been producing an output of 10,000 units?

A) The area P₂ACP₁
B) The area ABC
C) The area P₂ABP₁
D) The distance AB
E) There is no deadweight loss