A monopolist faces a demand of Q = 14 - P, where P is price. The firm has chosen to produce exactly 4 units of Q. Assume marginal cost (MC) is 6. In this case, the dead weight loss (DWL) in the market is: (be sure to show all work)

a) 4.5
b) 6.5
c) 8
d) 10

THANK YOU!!!

asked by Mary

2 years ago

95 views

0

0

Ask a New Question or answer this question.

Question

A monopolist faces a demand of Q = 14 - P, where P is price. The firm has chosen to produce exactly 4 units of Q. Assume marginal cost (MC) is 6. In this case, the dead weight loss (DWL) in the market is: (be sure to show all work)

a) 4.5
b) 6.5
c) 8
d) 10

THANK YOU!!!

a) 4.5
b) 6.5
c) 8
d) 10

THANK YOU!!!