The following figure depicts the downward-sloping market demand (D)curve for a five-day western Caribbean cruise on Carnival Cruise Lines.The price (P)is per person in U.S.dollars,and the quantity (Q)is the number of passenger tickets sold.This figure also shows the company's relevant marginal revenue (MR)curve and marginal cost (MC)curve.Use this figure to answer the following questions:

-If this cruise line faces a perfectly competitive market,its consumer surplus would be

Question

The following figure depicts the downward-sloping market demand (D)curve for a five-day western Caribbean cruise on Carnival Cruise Lines.The price (P)is per person in U.S.dollars,and the quantity (Q)is the number of passenger tickets sold.This figure also shows the company's relevant marginal revenue (MR)curve and marginal cost (MC)curve.Use this figure to answer the following questions:
 
-If this cruise line faces a perfectly competitive market,its consumer surplus would be

Quizplus · Accepted Answer

In a perfectly competitive market, consumer surplus is maximized because products are sold at the equilibrium price where supply equals demand. This maximization leads to the highest possible consumer surplus, which, based on the options provided and the context of a perfectly competitive market, would be $1.6 million.

The Following Figure Depicts the Downward-Sloping Market Demand (D)curve for a Five-Day