The following figure shows the revenue curves of a monopolist: Figure 10.6
D: Average revenue
MR: Marginal revenue
-In Figure 10.6,assume that marginal costs are constant at $2,500 and fixed costs are 0.What would be the amount of consumer surplus if the market was perfectly competitive?
A)$1,000,000
B)$500,000
C)$300,000
D)$250,000

Question

The following figure shows the revenue curves of a monopolist: Figure 10.6  
D: Average revenue
MR: Marginal revenue
-In Figure 10.6,assume that marginal costs are constant at $2,500 and fixed costs are 0.What would be the amount of consumer surplus if the market was perfectly competitive?
A)$1,000,000 
B)$500,000 
C)$300,000 
D)$250,000

Quizplus · Accepted Answer

The Answer of The following figure shows the revenue curves of a monopolist: Figure 10.6  
D: Average revenue
MR: Marginal revenue
-In Figure 10.6,assume that marginal costs are constant at $2,500 and fixed costs are 0.What would be the amount of consumer surplus if the market was perfectly competitive?
A)$1,000,000 
B)$500,000 
C)$300,000 
D)$250,000

The Following Figure Shows the Revenue Curves of a Monopolist