Exhibit 13-6 Refer to Exhibit 13-6.In single price monopoly,total welfare is area:
A) zero
B) a
C) b + d
D) a + b + d

Name: Exhibit 13-6 Refer to Exhibit 13-6.In single price monopoly,total welfare is area: A) zero B) a C) b + d D) a + b + d
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Question

Exhibit 13-6  Refer to Exhibit 13-6.In single price monopoly,total welfare is area:
A) zero 
B) a 
C) b + d 
D) a + b + d

Quizplus · Accepted Answer

In a single price monopoly, total welfare is given by the sum of consumer surplus and producer surplus (areas a, b, and d in the diagram). Therefore, the total welfare is a + b + d.