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The deadweight loss of the profit-maximizing monopoly is identified by what area?

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Answer:

area BCA

Step-by-step explanation:

The deadweight loss of the profit-maximizing monopoly is recognize by area BCA.

Under the deadweight loss of monopoly More is produced under ideal or perfect competition than under monopoly, and deadweight loss is refer to as the amount that buyers value the added or additional output over and above the opportunity costs of producing the additional output.

When a monopoly maximizes profit, the deadweight loss will be larger if demand is in elastic because there will be a reasonable margin of price to marginal cost.

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