Essay
(Table: Prices and Demand) The New Orleans Saints have a monopoly on Saints logo baseball hats.The Saints sell at most one hat to each customer, and the table shows each customer's willingness to pay.The marginal cost of producing a hat is $18.If the Saints were a perfectly competitive firm in a perfectly competitive industry, their profit-maximizing price and output total surplus would be _.If the Saints were a profit-maximizing monopoly, total
surplus would be _.
A.$0; $0
B.$27; $36
C.$36; $27
D.$18; $27
Correct Answer:
Verified
Correct Answer:
Verified
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