Author Question: Refer to Figure 15-12. What is the amount of consumer surplus if, instead of monopoly, the industry ... (Read 46 times)

Charlie · **on:** Jun 29, 2018

Refer to Figure 15-12. What is the amount of consumer surplus if, instead of monopoly, the industry was organized as a perfectly competitive industry?

A) 21 B) 124 C) 186 D) 332

Question 2

A perfectly competitive wheat farmer in a constant-cost industry produces 3,000 bushels of wheat at a total cost of 36,000. The prevailing market price is 15. What will happen to the market price of wheat in the long run?

A) The price falls to 12.
B) The price rises above 15.
C) The price remains constant at 15.
D) There is insufficient information to answer the question.