Table 15-13 the Following Table Gives Information on the Price, Quantity, and Quantity

question 263

Multiple Choice

Table 15-13
The following table gives information on the price, quantity, and total cost of production for a monopolist.
-Refer to Table 15-13. If the monopolist maximizes profits, he will charge a price of

• A)$4.
• B)$3.
• C)$2.
• D)$1.

---

Definitions:

Consumer Surplus

The divergence between the expected payment by consumers for a product or service and the actual payment made.

Producer Surplus

The difference between the amount producers are willing and able to supply goods for versus the amount they actually receive due to market prices.

Total Surplus

The sum of consumer surplus and producer surplus, representing the total net gain to society from the production and consumption of goods and services.

Tariff Revenue

Income that a government collects from imposing duties on imported goods.