Assume quantity must be an integer. The monopolist incurs a fixed cost of $4 per period, and a cost of $9.50 for each item it produces. The per-period demand schedule facing the firm is given in the following table:
Demand Schedule Facing the Monopolist
Q | P(Qd)
1 | 87
2 | 80
3 | 70
4 | 58
5 | 49
6 | 39
7 | 28
8 | 18
9 | 5
Assume the monopolist is a profit maximizer and is constrained to charging the same price for all units, and its fixed costs are entirely sunk. What is the monopolist's per-period producer surplus? Round to two decimal places and do not enter the currency symbol. If your answer is 31.125, enter 1.13.