Figure 16-2 Watanabe Sensei operates the only martial arts school in Hartfield.For simplicity,assume that consumers have identical demand curves and that Sensei knows what this demand curve is.Figure 16-2 shows this demand curve.
-Refer to Figure 16-2.If Sensei acts as a monopolist and charges the profit-maximizing price,what is his producer surplus?
A)the area B + D + G
B)the area A + B + C + D + H + G
C)the area C + D + H + G
D)the area A + C + H

Question

Figure 16-2  Watanabe Sensei operates the only martial arts school in Hartfield.For simplicity,assume that consumers have identical demand curves and that Sensei knows what this demand curve is.Figure 16-2 shows this demand curve.
-Refer to Figure 16-2.If Sensei acts as a monopolist and charges the profit-maximizing price,what is his producer surplus?
A)the area B + D + G 
B)the area A + B + C + D + H + G 
C)the area C + D + H + G 
D)the area A + C + H

Quizplus · Accepted Answer

The Answer of Figure 16-2  Watanabe Sensei operates the only martial arts school in Hartfield.For simplicity,assume that consumers have identical demand curves and that Sensei knows what this demand curve is.Figure 16-2 shows this demand curve.
-Refer to Figure 16-2.If Sensei acts as a monopolist and charges the profit-maximizing price,what is his producer surplus?
A)the area B + D + G 
B)the area A + B + C + D + H + G 
C)the area C + D + H + G 
D)the area A + C + H

Figure 16-2 Watanabe Sensei Operates the Only Martial Arts