(Figure: Monopoly Markup) Refer to the figure. Consumersurplus under monopoly is represented by:

Question

Quizplus · Accepted Answer

Consumer surplus is the area below the demand curve and above the price paid by consumers. Under monopoly, the price is raised above the marginal cost, resulting in a reduction in consumer surplus. Triangle abc represents the lost consumer surplus under monopoly, as it is the area between the demand curve and the monopoly price.

(Figure: Monopoly Markup) Refer to the Figure