Quiz: Homework Chapter 13 Monopoly Submit Quiz This Question: 1 pt 120123 (8 com

Question

Quiz: Homework Chapter 13 Monopoly Submit Quiz This Question: 1 pt 120123 (8 complete) This Quiz: 23 pts possible The graph shows the demand and cost conditions facing a perfectly competitive ndustry Price and cost (dollars per pizza) If the industry is taken over by a monopoly, what is the deadweight loss that results from the behavior of the monopoly? The deadweight loss that results from the behavior of the monopoly is sper 24 year >>> Remember that the quantity given on the x-axis is in thousands of pizzas 0 4 8 12 16 20 24 28 Enter your answer in the answer box. 6

Explanation / Answer

Answer
The deadweight loss is the area between change in quantity and the difference between MR and price at monopoly quantity
=0.5*(24-8)*(24000-16000)
=64000
The deadweight loss is $64000

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