The accompanying figure depicts a generalized downward-sloping market demand (D) curve for a product. It also shows the firm's relevant marginal revenue (MR) curve and marginal cost (MC) curve. Use this figure to answer the questions.
-For a monopoly that charges a single price of $6, calculate producer surplus.

Question

The accompanying figure depicts a generalized downward-sloping market demand (D) curve for a product. It also shows the firm's relevant marginal revenue (MR) curve and marginal cost (MC) curve. Use this figure to answer the  questions. 
-For a monopoly that charges a single price of $6, calculate producer surplus.

Quizplus · Accepted Answer

Producer surplus is the area above the supply curve and below the price level. In a monopoly, it is calculated as the difference between total revenue and total cost. Given the options, $80 is the correct producer surplus when the monopoly charges a single price of $6.

The Accompanying Figure Depicts a Generalized Downward-Sloping Market Demand (D)