Graph 15-6 This graph depicts the demand, marginal-revenue and marginal-cost curves of a profit-maximising monopolist.Use the graph to answer the following question(s).
-Refer to Graph 15-6.If the monopoly firm is NOT allowed to price discriminate, what will the consumer surplus be?
A)ABC
B)ADF
C)CEF
D)consumer surplus will equal zero

Question

Graph 15-6  This graph depicts the demand, marginal-revenue and marginal-cost curves of a profit-maximising monopolist.Use the graph to answer the following question(s).
-Refer to Graph 15-6.If the monopoly firm is NOT allowed to price discriminate, what will the consumer surplus be?
A)ABC 
B)ADF 
C)CEF 
D)consumer surplus will equal zero

Quizplus · Accepted Answer

Consumer surplus is the area above the price level and below the demand curve, up to the quantity sold. In this case, it's the area ABC, as the monopoly will set a single price for all units sold, which is represented by the area above the price (set by the monopoly at the point where the marginal cost curve intersects the demand curve) and below the demand curve up to the quantity sold.

Graph 15-6 This Graph Depicts the Demand, Marginal-Revenue and Marginal-Cost