The figure given below shows the cost and revenue curves of a monopolist. Figure 10.9
D: Average revenue
MR: Marginal revenue
ATC: Average total cost
MC: Marginal cost
-In Figure 10.9,what is the consumer surplus at the profit-maximizing levels of output and price?
A)JNM
B)0JNV
C)HMQ
D)0HQX
E)JHQN

Question

The figure given below shows the cost and revenue curves of a monopolist. Figure 10.9  
D: Average revenue
MR: Marginal revenue
ATC: Average total cost
MC: Marginal cost
-In Figure 10.9,what is the consumer surplus at the profit-maximizing levels of output and price?
A)JNM 
B)0JNV 
C)HMQ 
D)0HQX 
E)JHQN

Quizplus · Accepted Answer

Consumer surplus is the area above the price level and below the demand curve, up to the quantity sold. In this case, it is represented by the area JNM.

The Figure Given Below Shows the Cost and Revenue Curves