Question 1
Refer to the information provided in Figure 13.11 below to answer the question(s) that follow.
Refer to Figure 13.11. Suppose a monopolist faces the demand and costs in the figure and is able to perfectly price discriminate. What is the value of the deadweight loss?
◦ $0
◦ $16,000
◦ $32,000
◦ Indeterminate from the given information.
Question 2
Refer to the information provided in Figure 13.11 below to answer the question(s) that follow.
Refer to Figure 13.11. Suppose a monopolist faces the demand and costs in the figure and is able to perfectly price discriminate. The monopolist will ________ $16,000.
◦ have total revenues equal to
◦ earn a profit of
◦ have total costs equal to
◦ lose
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