Anonymous asked in Social ScienceEconomics · 2 months ago

Deadweight Loss Question Help?

The inverse demand for a product is represented by the equation P = 60 – Q, where P is the price in USD and Q is the annual output. Only one firm produces this product and that the marginal and average cost is $10. What is the deadweight loss at the profit maximising quantity?

A 400

B 525

C 262.5

D 200

E 50

1 Answer

  • ?
    Lv 6
    2 months ago

    1/2(60-10)x50 is the deadweight loss of the firm.

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