Suppose the accompanying figure shows the demand curve, marginal revenue curve and marginal cost curve for a monopolist. At this monopolist's profit-maximizing level of output, consumer surplus is ________.
A)$9,000
B)$4,500
C)$4,000
D)$2,000

Question

Suppose the accompanying figure shows the demand curve, marginal revenue curve and marginal cost curve for a monopolist.  At this monopolist's profit-maximizing level of output, consumer surplus is ________.
A)$9,000 
B)$4,500 
C)$4,000 
D)$2,000

Quizplus · Accepted Answer

Consumer surplus is the area of the triangle below the demand curve, above price to the left of the monopolist's profit-maximizing level of output, which in this case is ½ × $40 × 100 = $2,000.

Suppose the Accompanying Figure Shows the Demand Curve, Marginal Revenue