The Following Figure Shows the Revenue Curves of a Monopolist

question 55

Multiple Choice

The following figure shows the revenue curves of a monopolist:
Figure 11.6
D: Average revenue
MR: Marginal revenue
-In Figure 11.6, assume that marginal costs are constant at $2,500 and fixed costs are 0. What would be the amount of consumer surplus if the market was perfectly competitive?

• A)$1,000,000
• B)$500,000
• C)$300,000
• D)$250,000
• E)$350,000

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Definitions:

Exports

Goods or services sent from one country to another for sale or trade.

Significant Influence

The power to participate in financial and operating policy decisions of another entity without having control over it.

Dividends

Distributions from a company's earnings given to its shareholders by the corporation.

Net Income

The residual income of a company, which is calculated after expenses and taxes have been subtracted from total revenue.