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,social 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,social surplus is ________.

Quizplus · Accepted Answer

Under monopoly, social surplus is the sum of consumer surplus and producer surplus, which is represented by areas A + B + C.

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