Use the following diagram to answer the question(s).

Reference: Ref 11-1

The deadweight loss under monopoly would be

Question

Use the following diagram to answer the question(s).

Reference: Ref 11-1

The deadweight loss under monopoly would be

BlackTom AI · Accepted Answer

Let's parse the problem and the diagram to understand the deadweight loss (DWL) under monopoly.
Option choices: 75, 150, 225, 300.
First, recall that deadweight loss in a monopoly arises from the reduction in output from the socially efficient quantity (where price equals marginal cost) to the monopoly quantity (where marginal revenue equals marginal cost). The DWL is represented by the triangular area between the demand curve and the marginal cost (or supply) curve from the monopoly quantity to the competitive quantity.
Looking at the diagram, the monopoly quantity is where MR = MC, and the corresponding price is on the demand curve at that quantity. The competitive (efficient) quantity is where the demand curve intersects MC at price equal to MC, i.e., where P = MC.
The DWL triangle lies between the two quantities on the quantity axis and is bounded by the demand curve on top and the MC curve on the bottom (with MR lying inside the box). The horizontal distance between these two quantities, multiplied by the vertical difference between price on the demand curve and marginal cost across that interval, yields the DWL.
Now evaluate the options by comparing the estimated triangle area in the diagram:
- 75: This would correspond to a much smaller triangle, implying a very small output gap or a narrow price difference, which is inconsistent with the sizable DWL indicated by the diagram.
- 150: This value matches a moderate triangle area that aligns with the depicted gap between monopoly output and efficient output, given the scale on the axes and the dashed lines marking the relevant quantities.
- 225: This would indicate a larger DWL than shown, implying either a wider quantity gap or a larger price drop across the interval, which the diagram does not support.
- 300: This represents an even larger DWL, typically corresponding to a much larger divergence between monopoly and efficient quantities, which is not consistent with the plotted distances.
In sum, the deadweight loss is determined by the area of the triangle formed between the demand curve and MC across the monopoly quantity interval, and the magnitude shown in the figure corresponds to the 150 unit area when measured against the given scale.

Use the following diagram to answer the question(s). Reference: Ref 11-1 The deadweight loss under monopoly would be单项选择题

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