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All Consumers Are Alike and Each Has an Inverse Demand P=P =

Question 73

Multiple Choice

All consumers are alike and each has an inverse demand curve for a monopolist's product of P=P = 1002Q100 - 2 Q . The marginal cost of production is constant at MC=$10M C = \$ 10 . Let the monopolist charge a price of $10\$ 10 per unit purchased and a subscription fee of $2025\$ 2025 that must be paid by each purchaser. What is the amount of consumer's surplus generated by this scheme?


A) 0
B) $2025\$ 2025
C) \$2025 multiplied by the number of consumers in the market.
D) $90\$ 90 multiplied by the number of units purchased.

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