Figure 10-12

Figure 10-12 shows the cost and demand curves for a monopolist.
-Refer to Figure 10-12.Assume the firm maximizes its profits.What is the amount of consumer surplus?

Question

Figure 10-12
  
Figure 10-12 shows the cost and demand curves for a monopolist.
-Refer to Figure 10-12.Assume the firm maximizes its profits.What is the amount of consumer surplus?

Quizplus · Accepted Answer

Consumer surplus is the difference between the total amount consumers are willing to pay for a good and the amount they actually pay. In this case, consumers are willing to pay $332 for the good, but they only pay $146. Therefore, consumer surplus is $332 - $146 = $186.

Figure 10-12 Figure 10-12 Shows the Cost and Demand Curves for a and Demand