Use the following to answer questions 6-7:
Figure 10.1
-(Figure 10.1) The deadweight losses under monopoly and perfect price discrimination are _____ and _____, respectively.
A) $16; $0
B) $8; $16
C) $0; $32
D) $8; $0

Question

Use the following to answer questions 6-7:
Figure 10.1 
-(Figure 10.1) The deadweight losses under monopoly and perfect price discrimination are _____ and _____, respectively.
A) $16; $0 
B) $8; $16 
C) $0; $32 
D) $8; $0

Quizplus · Accepted Answer

Figure 10.1 shows that under monopoly, the deadweight loss is $8, while under perfect price discrimination, the deadweight loss is reduced to zero ($0). Therefore, the best choice is D, which corresponds to option D in the question.

Use the Following to Answer Questions 6-7