-The above figure shows the demand and marginal cost curves for a monopoly.Under monopoly,consumer surplus equals
A) a + b.
B) a + b + c.
C) a + b + c + d + e + f.
D) None of the above.

Question

-The above figure shows the demand and marginal cost curves for a monopoly.Under monopoly,consumer surplus equals
A) a + b. 
B) a + b + c. 
C) a + b + c + d + e + f. 
D) None of the above.

Quizplus · Accepted Answer

In a monopoly, consumer surplus is typically less than in a competitive market because the monopolist sets a higher price and lower quantity. The consumer surplus is the area above the price level and below the demand curve, which is not represented by any of the given options.

-The Above Figure Shows the Demand and Marginal Cost Curves