-In the figure above, the redistribution from the consumers to the producer if the firm is a single-price, unregulated monopoly rather than a perfectly competitive industry is
A) zero.
B) $8.00 per day.
C) $16.00 per day.
D) $32.00 per day.

Question

-In the figure above, the redistribution from the consumers to the producer if the firm is a single-price, unregulated monopoly rather than a perfectly competitive industry is
A) zero. 
B) $8.00 per day. 
C) $16.00 per day. 
D) $32.00 per day.

Quizplus · Accepted Answer

In a monopoly, the producer can charge a higher price than in a perfectly competitive market, leading to a redistribution of consumer surplus to producer surplus. The amount of this redistribution is given as $16.00 per day.

-In the Figure Above, the Redistribution from the Consumers to the Producer