The following figure is a supply-demand diagram that characterizes the demand, marginal revenue, and cost curves for a profit-maximizing monopolist.

-Refer to the figure above.Under monopoly,consumer surplus is ________.

Question

The following figure is a supply-demand diagram that characterizes the demand, marginal revenue, and cost curves for a profit-maximizing monopolist.
 
-Refer to the figure above.Under monopoly,consumer surplus is ________.

Quizplus · Accepted Answer

Consumer surplus under monopoly is represented by Area A, which is the area above the price level and below the demand curve up to the quantity sold.

The Following Figure Is a Supply-Demand Diagram That Characterizes the Demand