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QUESTION
Suppose the monopolist faces the following demand curve: P = 180 - 4q. Marginal cost of production is constant and equal to $20, and there are no...
Suppose the monopolist faces the following demand curve: P = 180 - 4q. Marginal cost of production is constant and equal to $20, and there are no fixed costs. What is the value of the deadweight loss created by this monopoly?
A) deadweight loss = $200
B) Deadweight loss = $400
C) Deadweight loss = $800
D) Deadweight loss = $512.50
E) Deadweight loss = $1,600
F) None of the above
