Figure 14-5
-Refer to Figure 14-5.What area measures the monopolist's profit?

Name: Figure 14-5 -Refer to Figure 14-5.What area measures the monopolist's profit?
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Question

Figure 14-5 
-Refer to Figure 14-5.What area measures the monopolist's profit?

Quizplus · Accepted Answer

The area representing the monopolist's profit is the rectangle (B-G) multiplied by the quantity K, which is the quantity sold at the profit maximizing price. So the correct answer is C, which is (B-G)*K. Options A, B, and D do not correctly represent the monopolist's profit.

Figure 14-5 -Refer to Figure 14-5.What Area Measures the Monopolist's Profit