Exhibit 15-2 In Exhibit 15-2, the consumer surplus that results from an unregulated monopoly, is shown by area

Question

Exhibit 15-2  In Exhibit 15-2, the consumer surplus that results from an unregulated monopoly, is shown by area

Quizplus · Accepted Answer

The consumer surplus that results from an unregulated monopoly is shown by the area abc. This represents the difference between what consumers are willing to pay for the goods or services and the price they actually pay. This area represents the welfare loss that results from the monopoly pricing. The other areas in the graph represent the producer surplus and deadweight loss. Therefore, the correct answer is A) abc.

Exhibit 15-2 in Exhibit 15-2, the Consumer Surplus That