Exhibit 9-2 Demand and cost information for a monopoly
Q
P
TC
0
40
10
1
30
15
2
20
25
3
10
40
4
  0
60
The marginal revenue of the second unit of output in Exhibit 9-2 is:

In the above figure suppose there is only one milk producer who chooses to restrict milk production to two million gallons per day

What is the size of the deadweight loss? (Hint: It is equal to the triangular area of consumer and producer surplus that is lost because of the reduction in output.) A) $12.5 million B) $6.25 million C) $2.25 million D) none of the above

Firm X is producing 1000 units, selling them at $15 each. Variable costs are $3 per unit and the firm is making an accounting profit of $3000 . What is the firm's fixed costs?

a. $9,000 b. $10,000 c. $11,000 d. $12,000