Figure 15-9
-Refer to Figure 15-9. The deadweight loss caused by a profit-maximizing monopoly amounts to
A)$250.
B)$500.
C)$750.
D)$1,000.

Question

Figure 15-9 
-Refer to Figure 15-9. The deadweight loss caused by a profit-maximizing monopoly amounts to
A)$250. 
B)$500. 
C)$750. 
D)$1,000.

Quizplus · Accepted Answer

The deadweight loss in a monopoly is the loss of economic efficiency when the equilibrium outcome is not achievable or not achieved. In this context, it is calculated as the area of the triangle formed between the demand curve and the marginal cost curve, from the monopoly quantity to the socially optimal quantity. The given choice B, $500, represents this area.

Figure 15-9 -Refer to Figure 15-9. the Deadweight Loss Caused by a Caused