Consider two firms competing to sell a homogeneous product by setting price. The inverse demand curve is given by P = 6 ? Q. If each firm's cost function is Ci(Qi) = 2Qi, then consumer surplus in this market is:
A. $2.
B. $8.
C. $4.
D. There is insufficient information to determine consumer surplus in this market.
Answer: B
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Refer to the above table. What does the marginal product equal when the quantity of labor goes from 1 to 2?
a. 26 b. 92 c. 23 d. 46
Using Figure 10.1 above is it possible to determine the price that this product is selling for if it is being sold in a competitive market? If so what is that price?
What will be an ideal response?
A resource price taker's resource demand curve is
a. horizontal b. the same as its marginal resource cost curve c. the same as its marginal revenue product curve d. the same as its marginal product curve e. the same as its average variable cost curve
Unanticipated increase in inflation transfers wealth from the borrower, who pays the pre-decided rate of interest to the lender
Indicate whether the statement is true or false