Figure 9.11 Figure 9.11 shows the cost and demand curves for a monopolist.
-Refer to Figure 9.11.Assume the firm maximises its profits.The amount of consumer surplus is

Question

Figure 9.11  Figure 9.11 shows the cost and demand curves for a monopolist.
-Refer to Figure 9.11.Assume the firm maximises its profits.The amount of consumer surplus is

Quizplus · Accepted Answer

Consumer surplus is the area above the price level and below the demand curve up to the quantity sold. In this case, it's the area of the triangle formed by the price level (where the firm's marginal cost curve intersects the demand curve, indicating the profit-maximizing price and quantity) and the vertical axis up to the demand curve. Without the specific details of Figure 9.11, the correct answer relies on the assumption that the figure illustrates a typical market demand and supply scenario where the firm is a price taker in a perfectly competitive market. The consumer surplus is calculated based on the difference between what consumers are willing to pay and what they actually pay, over the quantity sold. Given the options and without the ability to see the figure, the correct answer is based on the assumption that $186 is the calculated consumer surplus from the information provided in the figure.

Figure 911 Figure 9