Refer to the information provided in Figure 13.9 below to answer the question(s) that follow. Figure 13.9
-Refer to Figure 13.9. If this industry was originally perfectly competitive and becomes monopolized, the amount of consumer surplus transferred to Ohio Edison in the form of profits is
A) FGBE.
B) BEC.
C) FGBC.
D) FABE.

Question

Refer to the information provided in Figure 13.9 below to answer the question(s) that follow.  Figure 13.9
-Refer to Figure 13.9. If this industry was originally perfectly competitive and becomes monopolized, the amount of consumer surplus transferred to Ohio Edison in the form of profits is
A) FGBE. 
B) BEC. 
C) FGBC. 
D) FABE.

Quizplus · Accepted Answer

When an industry transitions from perfect competition to a monopoly, the consumer surplus that is transferred to the monopolist as profit is represented by the area between the competitive price and the monopoly price, up to the monopoly quantity. In this case, it is the area FGBE.

Refer to the Information Provided in Figure 13