Consider a partial equilibrium economy with utility function…
Consider a partial equilibrium economy with utility function U(m, q) = m + q^(1/3), production function f(x) = x^(1/4), and cost function C(q) = q^4. The ND-monopoly DWL is approximately 0.0176 (about 2.39% of MS(q*_c) approximately 0.7374), and the 1D-monopoly DWL is exactly 0. Comparing the ND-monopoly to the 1D-monopoly outcome, which of the following correctly ranks the DWL from largest to smallest across the three market structures: competitive equilibrium (CE), 1D-monopoly, and ND-monopoly?