Use the following to answer question 325:
Figure: The Monopolist III
-(Figure: The Monopolist III)Use 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 325:
Figure: The Monopolist III 
-(Figure: The Monopolist III)Use 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 all surplus being captured by the producer, leading to a producer surplus of $2,450, consumer surplus of $0, and no deadweight loss.

Use the Following to Answer Question 325