Exhibit 9-11
-If the monopolist in Exhibit 9-11 does not price discriminate, the total amount consumers will spend on its profit-maximizing quantity of output is
A) $95,200
B) $84,000
C) $79,000
D) $53,200
E) $42,000

Question

Exhibit 9-11 
-If the monopolist in Exhibit 9-11 does not price discriminate, the total amount consumers will spend on its profit-maximizing quantity of output is
A) $95,200 
B) $84,000 
C) $79,000 
D) $53,200 
E) $42,000

Quizplus · Accepted Answer

The correct answer is A because the total amount consumers will spend on the profit-maximizing quantity of output is equal to the area under the demand curve up to the profit-maximizing quantity. In this case, the profit-maximizing quantity is 4,000 units, and the area under the demand curve up to 4,000 units is $95,200.

Exhibit 9-11 -If the Monopolist in Exhibit 9-11 Does Not Price Discriminate