Figure 16-3
This figure depicts a situation in a monopolistically competitive market.
-Refer to Figure 16-3. How much consumer surplus will be derived from the purchase of this product at the monopolistically competitive price?

Question

Figure 16-3
This figure depicts a situation in a monopolistically competitive market. 
-Refer to Figure 16-3. How much consumer surplus will be derived from the purchase of this product at the monopolistically competitive price?

Quizplus · Accepted Answer

Consumer surplus is the difference between the price consumers are willing to pay for a good and the price they actually pay. In this case, consumers are willing to pay up to $500 for the product, but they only have to pay $300. Therefore, consumer surplus is $200.

Figure 16-3 This Figure Depicts a Situation in a Monopolistically Competitive Market