The Following Figure Shows the Demand (D), Marginal Revenue (MR)

question 83

Multiple Choice

The following figure shows the demand (D) , marginal revenue (MR) , and marginal cost (MC) curves for a monopolist.

-Refer to the figure above.The monopolist is forced to charge the competitive price,but the government agreed to compensate the monopolist for its loss in producer surplus,in comparison to the profit-maximizing outcome.What is the amount of compensation per unit of output traded?

• A) (Q₃ Q₁) (P₁ P₄)/2 Q₃
• B) [(P₁ P₃) Q₁ - (Q₃ Q₁) (P₃ P₄)/2]/2
• C) (Q₃ Q₁) (P₁ P₃)/2 Q₁
• D) (P₁ P₃) [Q₁ + (Q₃ Q₁)/2]/Q₃