Figure 15-3
-Refer to Figure 15-3.What area measures the monopolist's profit?

Question

Figure 15-3 
-Refer to Figure 15-3.What area measures the monopolist's profit?

Quizplus · Accepted Answer

The area that measures the monopolist's profit is the rectangle defined by the intersection of the demand curve and the marginal cost curve (i.e., the area between points B and G), multiplied by the quantity sold (K). Therefore, the correct choice is C, which corresponds to this area. A and D are incorrect because they do not represent the profit area, and B is incorrect because it includes the consumer surplus as part of the monopolist's profit.

Figure 15-3 -Refer to Figure 15-3.What Area Measures the Monopolist's Profit