Exhibit 15.3

-Refer to Exhibit 15.3,which shows the cost and revenue curves for a monopolist.The consumer surplus that results if the monopoly is unregulated is shown by the _____

Question

Exhibit 15.3
 
-Refer to Exhibit 15.3,which shows the cost and revenue curves for a monopolist.The consumer surplus that results if the monopoly is unregulated is shown by the _____

Quizplus · Accepted Answer

Consumer surplus is the area between the demand curve and the price level up to the quantity sold. In the case of a monopolist, this is represented by the triangular area above the price level (P) and below the demand curve, up to the quantity (Q) sold by the monopolist, which is area abc.

Exhibit 15.3 -Refer to Exhibit 15.3,which Shows the Cost and Revenue Curves