7. Refer to the figure below:Revenueand costper unit$30242220.8020180BC) $186.D)$332.62MCMR104QuantityAssume the monopolist maximises its profits. The amount of consumer surplus is:A) $21.B) $124.83ATCDemand8) If a monopolist's price is $50 per unit and its marginal cost is $25, then:A) to maximise profit, the firm should increase output.B) to maximise profit, the firm should decrease output.C) to maximise profit, the firm should continue to produce the output it isproducing.D) Not enough information is given to say what the firm should do tomaximise profit.

Extract the value from the given figure:Maximum price the consumer is willing to pay = $30Market…

7. Refer to the figure below: Revenue and cost per unit $30 24 22 20.80 20 18 B 62 E MC MR 83 104 ATC Demand Quantity Assume the monopolist maximises its profits. The amount of consumer surplus is: A) $21. B) $124. C) $186. D) $332.

7. Refer to the figure below: Revenue and cost per unit $30 24 22 20.80 20 18 B 62 E MC MR 83 104 ATC Demand Quantity Assume the monopolist maximises its profits. The amount of consumer surplus is: A) $21. B) $124. C) $186. D) $332.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

7. Refer to the figure below:
Revenue
and cost
per unit
$30
24
22
20.80
20
18
0
B
C) $186.
D)
$332.
62
MC
MR
104
Quantity
Assume the monopolist maximises its profits. The amount of consumer surplus is:
A) $21.
B) $124.
83
ATC
Demand
8) If a monopolist's price is $50 per unit and its marginal cost is $25, then:
A) to maximise profit, the firm should increase output.
B) to maximise profit, the firm should decrease output.
C) to maximise profit, the firm should continue to produce the output it is
producing.
D) Not enough information is given to say what the firm should do to
maximise profit.

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