Figure 10-10

-Refer to Figure 10-10.What is the area that represents consumer surplus under a monopoly?
A) the triangle P₀P₁F
B) the triangle P₀P₂E
C) the area P₁P₂EF
D) the rectangle P₁P₃HF

Question

Figure 10-10
 
-Refer to Figure 10-10.What is the area that represents consumer surplus under a monopoly?
A) the triangle P₀P₁F 
B) the triangle P₀P₂E 
C) the area P₁P₂EF 
D) the rectangle P₁P₃HF

Quizplus · Accepted Answer

Under a monopoly, the consumer surplus is represented by the triangle P₀P₁F, which is the difference between the maximum price consumers are willing to pay (P₀) and the actual price charged by the monopolist (P₁), multiplied by the quantity purchased (Q).

Figure 10-10 -Refer to Figure 10-10.What Is the Area That Represents Consumer