The following table shows the demand curve facing a monopolist who produces at a constant marginal cost of $10:

PriceQuantity

180

164

148

1212

1016

820

624

428

232

036

Q1. What is the firms demand curve?

[1]P = 36Q

[2]P = 18 - 0.5Q

[3]Q = 36P

[4]Q = 32P - 2

Q2. What is the firms' marginal revenue curve?

[1]MR = 36

[2]MR = - Q

[3]MR = 18 - Q

[4]MR = 0

Q3. What is the firms profit maximizing output?

[1]Q = 0

[2]Q = 8

[3]Q = 10

[4]Q = 18

Q4. What is the firms profit maximizing price?

[1]$ 10

[2]$ 14

[3]$ 88

[4]$ 112

Q5. What would the equilibrium quantity be in a competitive industry?

[1]0

[2]10

[3]16

[4]18

Q6. What would be the equilibrium price in a competitive industry?

[1]$ 10

[2]$ 16

[3]$ 18

[4]$ 32

Q7. Suppose the monopolist were forced to produce and price at competitive equilibrium. What would be the increase or decrease of the consumer surplus?

[1]$ 8

[2]$16

[3]$32

[4]$48

Q8. What would be the increase or decrease of the producer surplus?

[1]$8

[2]$10

[3]$14

[4]$32

Q9. What would be the social gain or loss?

[1]$8

[2]$10

[3]$16

[4]$32