(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 ________.
A) b; ab
B) ab; abc
C) b; abc
D) b; bc

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 ________. 
A) b; ab 
B) ab; abc 
C) b; abc 
D) b; bc

Quizplus · Accepted Answer

The monopolist who cannot price discriminate earns profit equal to area b, which is the difference between total revenue (TR) and total cost (TC). 
The monopolist practicing perfect price discrimination earns profit equal to areas abc. 
Therefore, the best choice is C because it correctly identifies the profit earned by the monopolist who cannot price discriminate and the monopolist practicing perfect price discrimination.

(Figure: PPD Monopolist) Refer to the Figure