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The Following Figure Shows the Demand (D), Marginal Revenue (MR)

Question 23

Multiple Choice

The following figure shows the demand (D) , marginal revenue (MR) , and marginal cost (MC) curves for a monopolist.
The following figure shows the demand (D) , marginal revenue (MR) , and marginal cost (MC)  curves for a monopolist.    -Refer to the figure above.The monopolist can freely set its price,but the government agreed to compensate consumers for their loss in consumer surplus in comparison to the competitive outcome.What is the amount of compensation per unit of output traded? A)  (Q₃ Q₁)  (P₁ P₄) /2 Q₁ B)  (Q₃ Q₁)  (P₁ P₄) /2 Q₃ C)  (Q₃ Q₁)  (P₁ P₃) /2 Q₁ D)  (P₁ P₃)  [Q₁ + (Q₃ Q₁) /2]/Q₁
-Refer to the figure above.The monopolist can freely set its price,but the government agreed to compensate consumers for their loss in consumer surplus in comparison to the competitive outcome.What is the amount of compensation per unit of output traded?


A) (Q₃ Q₁) (P₁ P₄) /2 Q₁
B) (Q₃ Q₁) (P₁ P₄) /2 Q₃
C) (Q₃ Q₁) (P₁ P₃) /2 Q₁
D) (P₁ P₃) [Q₁ + (Q₃ Q₁) /2]/Q₁

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