FIGURE 12-3 -Refer to Figure 12-3.Comparing the monopoly equilibrium to the perfectly competitive equilibrium,the area P₂P₃CB represents A)the dead-weight loss of monopoly. B)a redistribution of income from consumers to the monopolist. C)the net gain in the monopolist's profits. D)the net loss in the monopolist's profits. E)a redistribution of income from the monopolist to the consumer.

Question

Quizplus · Accepted Answer

The area P2P3CB represents the higher price that consumers pay under monopoly compared to perfect competition, which is a transfer of surplus from consumers to the monopolist.

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