The following figure shows the marginal revenue curve [MR],the demand curve,and the marginal cost curve [MC] for a monopolist with constant costs.
Figure 15-2
-Based on Figure 15-2,it can be concluded that the change in producer surplus due to the shift from perfect competition to monopoly is _____.
A)-$150
B)-$300
C)$150
D)$300

Question

The following figure shows the marginal revenue curve [MR],the demand curve,and the marginal cost curve [MC] for a monopolist with constant costs.
Figure 15-2 
-Based on Figure 15-2,it can be concluded that the change in producer surplus due to the shift from perfect competition to monopoly is _____.
A)-$150 
B)-$300 
C)$150 
D)$300

Quizplus · Accepted Answer

The change in producer surplus due to the shift from perfect competition to monopoly is $150. In perfect competition, the producer surplus is zero, as the price is equal to the marginal cost. In monopoly, the producer surplus is $150, as the price is above the marginal cost.

The Following Figure Shows the Marginal Revenue Curve [MR],the Demand