Figure 15-10
-Refer to Figure 15-10.What is the area that represents consumer surplus under a monopoly?

Question

Figure 15-10 
-Refer to Figure 15-10.What is the area that represents consumer surplus under a monopoly?

Quizplus · Accepted Answer

The area that represents consumer surplus under a monopoly is the triangle PS1U1B10S1U1B0PS1U1B11S1U1B0F. This is because consumer surplus is the difference between what consumers are willing to pay and what they actually pay. In this case, the area below the demand curve (PS1) and above the price (U1B10S1U1B0) represents what consumers are willing to pay, while the area below the demand curve and above the monopoly price (U1B11S1U1B0) represents what they actually pay. The difference between the two is the consumer surplus, which is the triangular area PS1U1B10S1U1B0PS1U1B11S1U1B0F.

Figure 15-10 -Refer to Figure 15-10.What Is the Area That Represents Consumer