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 ________ transferred to Ohio Edison in the form of profits is FGBE.
A) consumer surplus
B) producer surplus
C) welfare loss
D) net social gain

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 ________ transferred to Ohio Edison in the form of profits is FGBE.
A) consumer surplus 
B) producer surplus 
C) welfare loss 
D) net social gain

Quizplus · Accepted Answer

When an industry transitions from perfect competition to a monopoly, the area labeled FGBE represents the consumer surplus that is transferred to the monopolist, in this case, Ohio Edison, in the form of additional profits. This is because the monopolist can increase prices above the competitive level, reducing consumer surplus and increasing its own profits.

Refer to the Information Provided in Figure 13