Refer to the figure below. How much is consumer surplus in the monopoly outcome? a. Area C; b. Area R; c. Area D; d. Area C + D; e. Area C + R + D 37. Refer to the figure below. To maximize profit, what price should the firm charge? a. $18; b. $15; c. $8; d. $4 38. Refer to the figure below. The firm in question exhibits economies of scale: a. Along the decreasing portion of the long-run average cost curve (LRAC), up until Q0. b. Along the increasing portion of the long-run average cost curve (LRAC), after Q0. c. At Q0, where LRAC is minimum. d. Anywhere along the LRAC, as long as increasing the scale of operations does not affect cost per unit. Use the following table, which provides long-run information about the market for apples, to answer the next two questions. Price is price per pound of apples. Quantity Price Marginal Marginal Average (pounds) per Pound Revenue Cost Total Cost 100 $1.40 -- -- $2.00 200 $1.07 $0.74 $0.50 $1.50 300 $0.92 $0.62 $0.46 $0.75 400 $0.80 $0.44 $0.44 $0.70 500 $0.66 $0.10 $0.43 $0.65 600 $0.50 - $0.30 $0.50 $0.50 700 $0.30 - $0.80 $0.59 $1.00 39. Given the cost information above, a monopoly would charge a price of ______________ per pound and produce ________________ pounds of apples. (a) $0.80; 400 (b) $0.44; 400 (c) $0.50; 600 (d) $0.30; 600 40. Given the cost information above, a perfectly competitive industry would charge a price of ______________ per pound and produce ________________ pounds of apples. (a) $0.80; 400 (b) $0.44; 400 (c) $0.50; 600 (d) $0.30; 600