Use the figure below to answer the following questions.

Figure 13.3.3
-Refer to Figure 13.3.3. What is the redistribution of surplus from consumers to the producer with a single-price monopoly, as compared to a perfectly competitive market?
A)EADH
B)EABH
C)ABD
D)ACD
E)EABH - BCD

Question

Use the figure below to answer the following questions.
  
Figure 13.3.3
-Refer to Figure 13.3.3. What is the redistribution of surplus from consumers to the producer with a single-price monopoly, as compared to a perfectly competitive market?
A)EADH 
B)EABH 
C)ABD 
D)ACD 
E)EABH - BCD

Quizplus · Accepted Answer

The redistribution of surplus from consumers to the producer with a single-price monopoly is shown by the area EABH. In a perfectly competitive market, there is no single seller with monopoly power, and the market price is set at the equilibrium point where supply and demand intersect. This results in a higher quantity and lower price, represented by the area BCD. Therefore, the difference between the two scenarios is the area EADH, which is the deadweight loss caused by the monopoly's restriction on output.

Use the Figure Below to Answer the Following Questions