Figure 15-11
-Refer to Figure 15-11. Which area represents the deadweight loss from monopoly?
A)J
B)H
C)A+B+C+D+F+I+J+H
D)J+H

Question

Figure 15-11 
-Refer to Figure 15-11. Which area represents the deadweight loss from monopoly?
A)J 
B)H 
C)A+B+C+D+F+I+J+H 
D)J+H

Quizplus · Accepted Answer

Deadweight loss from monopoly represents the loss of consumer and producer surplus due to the monopoly restricting output and raising prices. This loss is represented by the triangle formed by the intersection of the marginal cost curve and the demand curve up to the monopoly quantity produced. In the given figure, this triangle is represented by area J+H, hence the correct answer is option D.

Figure 15-11 -Refer to Figure 15-11. Which Area Represents the Deadweight Loss