Suppose That a Firm Faces a Demand Curve for Its $P = 10 - Q ^ { d }$

question 38

Multiple Choice

Suppose that a firm faces a demand curve for its product of $P = 10 - Q ^ { d }$ . The corresponding marginal revenue curve is $M R = 10 - 2 Q$ . The firm has a constant marginal cost of $4 per unit. If the firm engages in first-degree price discrimination, how much producer surplus will it capture?

• A)$21.
• B)$18.
• C)$9.
• D)$4.50