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 the 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 the consumer surplus?

Quizplus · Accepted Answer

Consumer surplus is the area between the demand curve and the price level up to the quantity sold. The correct amount, based on the given options, is $186.

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