Refer to the information provided in Figure 13.9 below to answer the question(s) that follow. Figure 13.9
-Refer to Figure 13.9. If Ohio Edison is forced to produce the efficient level of electricity (instead of the monopoly level),
A) the net social gain equals area BEC.
B) the monopolist loses profits equal to FABE.
C) consumers gain consumer surplus of AFC.
D) the monopolist earns a profit of FGBC.

Question

Refer to the information provided in Figure 13.9 below to answer the question(s) that follow.  Figure 13.9
-Refer to Figure 13.9. If Ohio Edison is forced to produce the efficient level of electricity (instead of the monopoly level),
A) the net social gain equals area BEC. 
B) the monopolist loses profits equal to FABE. 
C) consumers gain consumer surplus of AFC. 
D) the monopolist earns a profit of FGBC.

Quizplus · Accepted Answer

When Ohio Edison is forced to produce at the efficient level, the net social gain is represented by the area BEC, which is the difference between the consumer and producer surplus at the efficient level compared to the monopoly level.

Refer to the Information Provided in Figure 13