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Question
Table 15-4| Price per Dose | Quantity Demanded (dose) | Total Cost of Production (dollars) |
| $80 | 0 | $80 |
| 72 | 1 | 82 |
| 64 | 2 | 88 |
| 56 | 3 | 100 |
| 48 | 4 | 124 |
| 40 | 5 | 164 |
| 32 | 6 | 208 |
| 24 | 7 | 268 |
| 16 | 8 | 340 |
Shakti Inc. has been granted a patent for its Arnica toothache balm. Table 15-4 shows the demand and the total cost schedule for the firm.
Refer to Table 15-4. What is the amount of the deadweight loss generated by Shakti when it produces the monopoly output?
A) $124
B) $42
C) $36
D) $12
Answer
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