Refer to the Graph Shown

question 83

Multiple Choice

Refer to the graph shown. 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.

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Definitions:

Pretax Income

The amount of income earned by a business before any taxes are deducted.