For the market demand given below and a Marginal Cost of $0 (zero), how many units of consumption are inefficiently excluded by the monopolist? Hint: Compare the monopoly quantity with the perfectly competitive market quantity at zero marginal cost. Price Quantity $5 20 $4 30 $3 40 $2 50 $1 60 $0 70 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a 50 units are excluded by the monopolist. b No consumption units are inefficiently excluded by the monopolist 40 units are excluded by the monopolist. d 30 units are excluded by the monopolist
For the market demand given below and a Marginal Cost of $0 (zero), how many units of consumption are inefficiently excluded by the monopolist? Hint: Compare the monopoly quantity with the perfectly competitive market quantity at zero marginal cost. Price Quantity $5 20 $4 30 $3 40 $2 50 $1 60 $0 70 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a 50 units are excluded by the monopolist. b No consumption units are inefficiently excluded by the monopolist 40 units are excluded by the monopolist. d 30 units are excluded by the monopolist
Chapter14: Monopoly
Section: Chapter Questions
Problem 14.1P
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Transcribed Image Text:For the market demand given below and a Marginal Cost of $0 (zero), how many units of consumption are inefficiently excluded by
the monopolist? Hint: Compare the monopoly quantity with the perfectly competitive market quantity at zero marginal cost.
Price
Quantity
$5
20
$4
30
$3
40
$2
50
$1
60
$0
70
Select an answer and submit. For keyboard navigation, use the up/down arow keys to select an answer.
50 units are excluded by the monopolist.
No consumption units are inefficiently excluded by the monopolist
40 units are excluded by the monopolist.
30 units are excluded by the monopolist
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