Use the following figure to answer the question : Figure 12-1 : shows the downward sloping demand and marginal revenue [MR] curves of a monopolist. The MR curve intersects the marginal cost [MC] curve at point B. MC is constant at the P₁.

-Refer to Figure 12-1. If the monopolist cannot price discriminate, deadweight loss will be equal to:

Question

Use the following figure to answer the question : Figure 12-1 : shows the downward sloping demand and marginal revenue [MR] curves of a monopolist. The MR curve intersects the marginal cost [MC] curve at point B. MC is constant at the P₁.

-Refer to Figure 12-1. If the monopolist cannot price discriminate, deadweight loss will be equal to:

Quizplus · Accepted Answer

Deadweight loss in a monopoly occurs because the monopolist produces less than the socially optimal quantity, leading to a loss of economic efficiency. The area ABC represents the lost surplus that would have been traded in a competitive market but is not due to the monopolist's higher price and lower quantity.

Use the Following Figure to Answer the Question : Figure