-If the monopoly firm maximizes profit,consumers will pay:
A)$2.00 per unit and consumer surplus will be $45.
B)$2.50 per unit and consumer surplus will be $18.75.
C)$3.50 per unit and consumer surplus will be $11.25.
D)$3.50 per unit and consumer surplus will be $22.5.

Question

-If the monopoly firm maximizes profit,consumers will pay:
A)$2.00 per unit and consumer surplus will be $45. 
B)$2.50 per unit and consumer surplus will be $18.75. 
C)$3.50 per unit and consumer surplus will be $11.25. 
D)$3.50 per unit and consumer surplus will be $22.5.

Quizplus · Accepted Answer

In a monopoly, the firm maximizes profit where marginal cost equals marginal revenue. Given the options, $3.50 per unit with a consumer surplus of $11.25 is the likely outcome where the firm maximizes profit, as it reflects a higher price and lower consumer surplus typical of monopolistic pricing.

-If the Monopoly Firm Maximizes Profit,consumers Will Pay