Figure 15-8
-Refer to Figure 15-8. What area represents the total surplus lost due to monopoly pricing?
A)the rectangle (A-
C)*X
B)the triangle 1/2[(A-
C)*(Y-
X)]
C)the triangle 1/2[(A-
B)*(Y-
X)]
D)the rectangle (A-
C)*X plus the triangle 1/2[(A-
C)*(Y-

Question

Figure 15-8 
-Refer to Figure 15-8. What area represents the total surplus lost due to monopoly pricing?
A)the rectangle (A-
C)*X 
B)the triangle 1/2[(A-
C)*(Y-
X)] 
C)the triangle 1/2[(A-
B)*(Y-
X)] 
D)the rectangle (A-
C)*X plus the triangle 1/2[(A-
C)*(Y-

Quizplus · Accepted Answer

The total surplus lost due to monopoly pricing is represented by the deadweight loss, which is the area of the triangle 1/2[(A-C)*(Y-X)]. This area represents the reduction in total surplus due to the monopolist producing less than the socially optimal quantity.

Figure 15-8 -Refer to Figure 15-8. What Area Represents the Total Surplus