Figure: PPD Monopolist Refer to the figure. A monopolist who cannot price discriminate earns profit equal to area(s) ________, and a monopolist practicing perfect price discrimination earns profit equal to areas ________.

Question

Figure: PPD Monopolist  Refer to the figure. A monopolist who cannot price discriminate earns profit equal to area(s) ________, and a monopolist practicing perfect price discrimination earns profit equal to areas ________.

Quizplus · Accepted Answer

The shaded area in the figure represents the profit earned by the monopolist. 
For the monopolist who cannot price discriminate, profit equals the rectangle marked 'b'. 
For the monopolist practicing perfect price discrimination, profit equals the entire triangle marked 'abc'. Therefore, the correct answer is C, where the monopolist who cannot price discriminate earns profit equal to area 'b', and the monopolist practicing perfect price discrimination earns profit equal to areas 'abc'.

Figure: PPD Monopolist Refer to the Figure