If a monopolist must charge one price to all consumers, then the price that maximizes the sum of the consumer surplus and the producer surplus must be the price at which the demand curve intersects the

Question

Quizplus · Accepted Answer

The price that maximizes the sum of consumer surplus and producer surplus in a monopoly, when charging a single price, is where the demand curve intersects the marginal cost curve. This is because at this point, the price and quantity produced are socially optimal, aligning with the principles of allocative efficiency.

If a Monopolist Must Charge One Price to All Consumers