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Since the firm is a monopolist in the Ruritanian market, it can unilaterally set the uniform price for the good. If the firm sets a
Since the firm is a monopolist in the Ruritanian market, it can unilaterally set the uniform price for the good. If the firm sets a price, P < $40 (per unit of good), then which one of the following statements is correct? 1. Aggregate Surplus obtained by all agents = [P - 10]x[80 - 2P] + 0.5x[80 - 2P]x[40 - P]dollars 2. Aggregate Producer Surplus = [P - 10]x[40 - P] dollars, Aggregate Consumer Surplus =0.5x[80 - 2P]x[80 - P] dollars 3. Aggregate Producer Surplus = [P - 20 x[80 - 2P] dollars, Aggregate Consumer Surplus =0.5x[80 - 2P]x[40 - P] dollars 4. Aggregate Producer Surplus = [P - 10]x[80 - 2P] dollars, Aggregate Consumer Surplus =0.5x[40 - P]x[40 - 2P] dollars 5. Aggregate Surplus obtained by all agents = [P - 10]x[40 - P] + 0.5x[80 - 2P]x[80 - P]dollars 6. Aggregate Surplus obtained by all agents = [P - 20]x[80 - 2P] + 0.5x[80 - 2P]x[40 - P]dollars
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