Figure 15-16

-Refer to Figure 15-16.If the monopoly firm is not allowed to price discriminate,then consumer surplus amounts to

Question

Figure 15-16
 
-Refer to Figure 15-16.If the monopoly firm is not allowed to price discriminate,then consumer surplus amounts to

Quizplus · Accepted Answer

Consumer surplus is the area below the demand curve and above the market price. Without price discrimination, the monopoly firm charges a single price at point P which results in a consumer surplus of the trapezoidal area PABC, which is $1,562.50.

Figure 15-16 -Refer to Figure 15-16.If the Monopoly Firm Is Not Allowed