Figure 15-10
-Refer to Figure 15-10.Compared to a perfectly competitive market,consumer surplus is lower in a monopoly by an amount equal to the
A)area FHE.
B)area FGE.
C)area P1P2EF.
D)area P1P2GF.

Question

Figure 15-10 
-Refer to Figure 15-10.Compared to a perfectly competitive market,consumer surplus is lower in a monopoly by an amount equal to the
A)area FHE. 
B)area FGE. 
C)area P1P2EF. 
D)area P1P2GF.

Quizplus · Accepted Answer

In a monopoly, the consumer surplus is reduced by the area P1P2EF, which represents the loss in consumer surplus due to the higher price and lower quantity produced compared to a perfectly competitive market.

Figure 15-10 -Refer to Figure 15-10.Compared to a Perfectly Competitive Market,consumer Surplus