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?
- ?Lv 62 months ago
1/2(60-10)x50 is the deadweight loss of the firm.