Scenario: Monopolist facing a Linear Demand Curve A monopolist faces a linear demand of the form P=a-bQ = 750-15Q. Their marginal cost ( MC) curve is estimated by the equation MC = 100+10Q. Their cost per unit ( ATC) at their profit-maximizing output ( QM) is $193.56, while their cost per unit ( ATC) at the competitive market (socially efficient) output (Qd is $237.69. Referenoe: (Soenario: Monopolist facing a Linear Demand Curve) (Scenario: Monopolist facing a Linear Demand Curve) When the monopolist charges the profit maximizing price, the consumer surplus will only be O A. $1,340.68 O B. S800.40 OC. $2,578.21 O D.$1,980.47 O E. $1505.32
Scenario: Monopolist facing a Linear Demand Curve A monopolist faces a linear demand of the form P=a-bQ = 750-15Q. Their marginal cost ( MC) curve is estimated by the equation MC = 100+10Q. Their cost per unit ( ATC) at their profit-maximizing output ( QM) is $193.56, while their cost per unit ( ATC) at the competitive market (socially efficient) output (Qd is $237.69. Referenoe: (Soenario: Monopolist facing a Linear Demand Curve) (Scenario: Monopolist facing a Linear Demand Curve) When the monopolist charges the profit maximizing price, the consumer surplus will only be O A. $1,340.68 O B. S800.40 OC. $2,578.21 O D.$1,980.47 O E. $1505.32
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Q23
Transcribed Image Text:Scenario: Monopolist facing a Linear Demand Curve
A monopolist faces a linear demand of the form P =a-bQ = 750-15Q. Their marginal cost ( MC) curve is estimated by the equation MC =100+10Q. Their cost per unit ( ATC) at their profit-maximizing output ( QM) is
$193.56, while their cost per unit ( ATC) at the competitive market (socially efficient) output ( Qd is $237.69.
Reference: (Scenario: Monopolist facing a Linear Demand Curve)
(Scenario: Monopolist facing a Linear Demand Curve) When the monopolist charges the profit maximizing price, the consumer surplus will only be
O A. $1,340.68
O B. $800.40
O C. $2,578.21
O D. $1,980.47
O E. $1505.32
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