QUESTION 46 The figure below shows the revenue and cost curves for a profi-maxim

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QUESTION 46 The figure below shows the revenue and cost curves for a profi-maximizing monopolist. Based on the figure, welftare loss due to monopoly is indicated by the area FIGURE 8-1 ATC ND MR Quantity O a. EGQ3Q1 o b. DFQ201 C. DGE d. FEG O e. DFH QUESTION 47 The following payoff matrix shows the possible profits that cach firm will can under different pricing st in order to lure away customers from the competitors or higher prices in order to increase their profits. The profits are measured in million dollars In the rategies. The fims can choose to have lower prices Figure 9.5: to save all answers Click Save and Submit to save and submit. Click Save AllA

Explanation / Answer

Ans is E

Dead weight loss=DFH

Dead weight loss is the decline in total surplus due to inefficient outcome where efficient outcome is the perfectly competitive market outcome.

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