A firm with market power faces the demand function q = 2,000 – 40P. The firm's marginal cost function is MC(q) = 10 + 0.002q. If the firm establishes a block pricing structure with two different prices and maximizes producer surplus, identify consumer surplus, producer surplus, and total surplus. Suppose that the two prices the firm will use to maximize producer surplus are $24.684 and $37.342. The production cost is 11,151.84. (Give your answers to two decimal places.) consumer surplus: $ 6410.83 Incorrect producer surplus: $ 20253.16 total surplus: $ 26613.35

A firm with market power faces the demand function q = 2,000 – 40P. The firm's marginal cost function is MC(q) = 10 + 0.002q. If the firm establishes a block pricing structure with two different prices and maximizes producer surplus, identify consumer surplus, producer surplus, and total surplus. Suppose that the two prices the firm will use to maximize producer surplus are $24.684 and $37.342. The production cost is 11,151.84. (Give your answers to two decimal places.) consumer surplus: $ 6410.83 Incorrect producer surplus: $ 20253.16 total surplus: $ 26613.35

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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