Figure 15-10
-Refer to Figure 15-10.What is the area that represents consumer surplus under a monopoly?
A)the triangle P0P1F
B)the triangle P0P2E
C)the trapezium P1P2EF
D)the rectangle P1P3HF

Question

Figure 15-10 
-Refer to Figure 15-10.What is the area that represents consumer surplus under a monopoly?
A)the triangle P0P1F 
B)the triangle P0P2E 
C)the trapezium P1P2EF 
D)the rectangle P1P3HF

Quizplus · Accepted Answer

Under a monopoly, the price charged is higher than the competitive price, resulting in a loss of consumer surplus. The area that represents consumer surplus under a monopoly is the triangle P0P1F, which is the difference between the maximum amount that consumers are willing to pay (P0F) and the price they actually pay (P1F). Therefore, the correct answer is A.

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