FIGURE 12-3
-Refer to Figure 12-3.Comparing the perfectly competitive equilibrium to the monopoly equilibrium,the reduction in consumer surplus due to monopoly is outlined by

Question

Quizplus · Accepted Answer

In a monopoly, the price is higher and the quantity is lower compared to a perfectly competitive market. The reduction in consumer surplus is represented by the area between the monopoly price and the competitive price, over the quantity sold by the monopoly. This is outlined by P₂ECP₃.

FIGURE 12-3 -Refer to Figure 12-3.Comparing the Perfectly Competitive Equilibrium to the to the Monopoly