The figure depicts the demand curve of a firm producing cars, together with its marginal cost, average cost, and isoprofit curves. Based on the figure, which of the following statements is correct? Price, MC ($) 8,000 5,400 4,100 2,820 100 0 0 I 34 1 I 50 Quantity of cars, Q MC Isoprofit AC 100 O The consumer surplus in the profit-maximizing outcome is $105,300. The producer surplus in the Pareto efficient outcome is $133,960. O The deadweight loss in the profit-maximizing outcome is $20,640. The firm's profit in the Pareto efficient outcome is $100,000.

The figure depicts the demand curve of a firm producing cars, together with its marginal cost, average cost, and isoprofit curves. Based on the figure, which of the following statements is correct? Price, MC ($) 8,000 5,400 4,100 2,820 100 0 0 I 34 1 I 50 Quantity of cars, Q MC Isoprofit AC 100 O The consumer surplus in the profit-maximizing outcome is $105,300. The producer surplus in the Pareto efficient outcome is $133,960. O The deadweight loss in the profit-maximizing outcome is $20,640. The firm's profit in the Pareto efficient outcome is $100,000.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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