For a monopoly market, total surplus can be defined as the value of the good to
A)producers minus the cost incurred by consumers.
B)producers plus the cost incurred by consumers.
C)consumers minus the costs of producing the good.
D)consumers plus the cost of producing the good.

Question

Quizplus · Accepted Answer

Total surplus in a monopoly market refers to the total value that consumers derive from consuming the good minus the cost of producing the good. This is because in a monopoly market, the producer is able to charge a higher price than the marginal cost of production, leading to a loss of welfare for consumers. Therefore, total surplus is the value gained by consumers minus the cost incurred by producers.

For a Monopoly Market, Total Surplus Can Be Defined as the Value