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The Following Figure Shows the Demand (D), Marginal Cost (MC)

Question 226

Multiple Choice

The following figure shows the demand (D) , marginal cost (MC) , and marginal revenue (MR) for a monopolist firm.
The following figure shows the demand (D) , marginal cost (MC) , and marginal revenue (MR)  for a monopolist firm.    -Refer to the figure above.How much of the loss in consumer surplus generated by the single-price profit-maximizing monopoly remains part of social surplus? A)  (P₁ P₄)  Q₁ + (Q₃ Q₁)  (P₁ P₄) /2 B)  (P₁ P₃)  Q₁ + (Q₃ Q₁)  (P₁ P₃) /2 C)  (P₁ P₂)  Q₁ + (Q₃ Q₁)  (P₁ P₂) /2 D)  (Q₃ Q₁)  (P₁ P₄) /2
-Refer to the figure above.How much of the loss in consumer surplus generated by the single-price profit-maximizing monopoly remains part of social surplus?


A) (P₁ P₄) Q₁ + (Q₃ Q₁) (P₁ P₄) /2
B) (P₁ P₃) Q₁ + (Q₃ Q₁) (P₁ P₃) /2
C) (P₁ P₂) Q₁ + (Q₃ Q₁) (P₁ P₂) /2
D) (Q₃ Q₁) (P₁ P₄) /2

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