The figure given below shows the cost and revenue curves of a monopolist. Figure 24.9 D: Average revenue
MR: Marginal revenue
ATC: Average total cost
MC: Marginal cost
Refer to Figure 24.9.Suppose that the market is perfectly competitive.The consumer surplus would be represented by the area _____.

Question

The figure given below shows the cost and revenue curves of a monopolist. Figure 24.9  D: Average revenue
MR: Marginal revenue
ATC: Average total cost
MC: Marginal cost
Refer to Figure 24.9.Suppose that the market is perfectly competitive.The consumer surplus would be represented by the area _____.

Quizplus · Accepted Answer

In a perfectly competitive market, the price would be at the intersection of the demand and supply curve, which is point Q in this case. The consumer surplus would be the area between the demand curve and the price line, from point H to point Q. This is represented by area HMQ. Therefore, the correct answer is C.

The Figure Given Below Shows the Cost and Revenue Curves