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Consider the Monopoly in the Figure Below with Price Regulated

Question 1

Multiple Choice

Consider the monopoly in the figure below with price regulated at $2 per unit.Deadweight loss resulting from the unregulated monopoly price is _________ than the deadweight loss resulting from the regulated price.


A) greater
B) less
C) no different
D) There is insufficient information to determine the difference in the deadweight loss between the regulated and unregulated prices.

Correct Answer:

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