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Value of the deadweight loss

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Reference no: EM131046038

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

Reference no: EM131046038

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