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A firm with market power has an inverse demand curve of P = 450 – 5Q and marginal cost of MC = 40Q, where Q is measured in thousands. What is the deadweight loss from market power at the firm's profit-maximizing output level?

A. $280,000
B. $9,400
C. $22,500
D. $15,000

1 Answer

5 votes
I believe the answer is b
User Ddewaele
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