Figure 8.11 Figure 8.11 shows the cost and demand curves for a monopolist.
-Refer to Figure 8.11.Assume the firm maximises its profits.The amount of consumer surplus is -.

Question

Figure 8.11  Figure 8.11 shows the cost and demand curves for a monopolist.
-Refer to Figure 8.11.Assume the firm maximises its profits.The amount of consumer surplus is -.

Quizplus · Accepted Answer

The consumer surplus is the area above the market price and below the demand curve. In this case, the market price is $54 and the demand curve intersects the price axis at a quantity of 6. Thus, the consumer surplus is (1/2)(9)(54-18) = $186.

Figure 811 Figure 8