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

Question 38

Multiple Choice

Suppose that a firm faces a demand curve for its product of P=10QdP = 10 - Q ^ { d } . The corresponding marginal revenue curve is MR=102QM 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

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