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If a single firm  with demand Q=100-2P (Q=quantity, P=Price), reduces its constant marginal costs from £8 to £4 then Consumer Surplus (CS) and Producer Surplus (PS) after the reduction in marginal costs will be... a. CS=1058 PS=529 b. CS=2116 PS=1058 c. CS=1000 PS=500 d. CS=500 PS=1000 e. CS=529 PS=1058

If a single firm  with demand Q=100-2P (Q=quantity, P=Price), reduces its constant marginal costs from £8 to £4 then Consumer Surplus (CS) and Producer Surplus (PS) after the reduction in marginal costs will be... a. CS=1058 PS=529 b. CS=2116 PS=1058 c. CS=1000 PS=500 d. CS=500 PS=1000 e. CS=529 PS=1058

Economics:
Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter25: Monopoly
Section: Chapter Questions
Problem 9E
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If a single firm  with demand Q=100-2P (Q=quantity, P=Price), reduces its constant marginal costs from £8 to £4 then Consumer Surplus (CS) and Producer Surplus (PS) after the reduction in marginal costs will be...

a.

CS=1058 PS=529

b.

CS=2116 PS=1058

c.

CS=1000 PS=500

d.

CS=500 PS=1000

e.

CS=529 PS=1058

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