A firm faces the demand for its product, , as shown in the figure below. It produces under conditions of constant costs in the long run, and LMC = LAC = $12 per unit. Answer the next 5 questions using this information.
1. A firm faces the demand and cost conditions for its product given in the figure. If the firm must set a uniform price for the good, what price will it set to maximize its profit in the long run?
A. $12
B. $24
C. $25
D. $30
E. none of the above
2. At the profit-maximizing uniform price, the firm earns economic profit of when it engages in uniform pricing.
A. $3,872
B. $4,728
C. $4,874
D. $5,428
E. none of the above
3. Under uniform pricing, consumers enjoy $ of consumer surplus.
A. $1,872
B. $1,936
C. $2,474
D. $2,500