Use the following to answer questions:
Figure: Monopoly 6
-(Figure: Monopoly 6) If the market in this figure is a monopoly, the consumer surplus is area ______, and the deadweight loss is area ______.
A) B; C
B) A; C
C) A; B + C
D) C; B

Question

Use the following to answer questions:
Figure: Monopoly 6 
-(Figure: Monopoly 6) If the market in this figure is a monopoly, the consumer surplus is area ______, and the deadweight loss is area ______.
A) B; C 
B) A; C 
C) A; B + C 
D) C; B

Quizplus · Accepted Answer

In a monopoly, consumer surplus is the area above the price level and below the demand curve, which is area A. The deadweight loss is the loss of total welfare due to the monopoly pricing, which is area C.

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