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

question 55

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

---

Definitions:

Income Increase

A rise in the amount of money received, especially on a regular basis, through work, investments, or other sources.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded.

Supply Analysis

The examination and evaluation of the supply side of the market, focusing on factors such as production capacity, supplier behavior, and costs.

Primary Industry

The sector of the economy that extracts and harvests natural resources directly from the Earth, such as agriculture, mining, and forestry.