All Consumers Are Alike and Each Has an Inverse Demand $P =$

question 73

Multiple Choice

All consumers are alike and each has an inverse demand curve for a monopolist's product of $P =$ $100 - 2 Q$ . The marginal cost of production is constant at $M C = \$ 10$ . Let the monopolist charge a price of $\$ 10$ per unit purchased and a subscription fee of $\$ 2025$ that must be paid by each purchaser. What is the amount of consumer's surplus generated by this scheme?

• A) 0
• B) \(\$ 2025\)
• C) \$2025 multiplied by the number of consumers in the market.
• D) \(\$ 90\) multiplied by the number of units purchased.

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