If a single firm with demand Q=100-2P (Q=quantity, P=Price), reduces its constant marginal costs from £8 to £4 then Consumer Surplus (CS) and Producer Surplus (PS) after the reduction in marginal costs will be... a. CS=1058 PS=529 b. CS=2116 PS=1058 c. CS=1000 PS=500 d. CS=500 PS=1000 e. CS=529 PS=1058

If a single firm with demand Q=100-2P (Q=quantity, P=Price), reduces its constant marginal costs from £8 to £4 then Consumer Surplus (CS) and Producer Surplus (PS) after the reduction in marginal costs will be... a. CS=1058 PS=529 b. CS=2116 PS=1058 c. CS=1000 PS=500 d. CS=500 PS=1000 e. CS=529 PS=1058

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter25: Monopoly

Section: Chapter Questions

Problem 9E

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If a single firm with demand Q = 100 - 2P (Q= quantity, P = Price), reduces its constant marginal costs from £8 to £4 then Consumer Surplus (CS) and Producer Surplus (PS) after the reduction in marginal costs will be... Question 12 Answer a CS = 1058 PS = 529 b. CS = 2116 PS = 1058 c. CS = 529 PS = 1058 d. CS = 1000 PS = 500 e. CS = 500 PS = 1000
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