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Figure: The Monopolist III
-(Figure: The Monopolist III) Look at the figure The Monopolist III. If this monopolist perfectly price-discriminates, then it will produce _____ units. This will lead to producer surplus equal to _____, consumer surplus equal to _____, and a deadweight loss equal to _____.
A) 70; $2,450; $0; $0
B) 50; $1,225; $0; $0
C) 35; $1,225; $612.50; $612.50
D) 100; $1,500; $612.50; $612.50

Question

Use the following to answer question:
Figure: The Monopolist III 
-(Figure: The Monopolist III) Look at the figure The Monopolist III. If this monopolist perfectly price-discriminates, then it will produce _____ units. This will lead to producer surplus equal to _____, consumer surplus equal to _____, and a deadweight loss equal to _____.
A) 70; $2,450; $0; $0 
B) 50; $1,225; $0; $0 
C) 35; $1,225; $612.50; $612.50 
D) 100; $1,500; $612.50; $612.50

Quizplus · Accepted Answer

When a monopolist perfectly price-discriminates, it produces the quantity where marginal cost equals demand, which is 70 units. This results in a producer surplus of $2,450, consumer surplus of $0, and no deadweight loss.

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