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Imagine a profit-maximizing monopoly operating under the following conditions. The price which maximizes profit is $12. The marginal revenue (MR) curve and marginal cost (MC)
Imagine a profit-maximizing monopoly operating under the following conditions. The price which maximizes profit is $12. The marginal revenue (MR) curve and marginal cost (MC) curve intersect where the quantity of output is 10 units and marginal cost is $6. The socially efficient quantity of production is 14 units. The demand curve and MC curves are linear. What is the size of the deadweight loss created by this monopolist?
Group of answer choices
$4
$6
$12
$16
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