The figure above shows a natural monopoly regulated using a marginal cost pricing rule.
-In the figure above,the dark triangle is the
A) consumer surplus.
B) deadweight loss.
C) producer surplus.
D) total cost.
E) economic profit.

Question

The figure above shows a natural monopoly regulated using a marginal cost pricing rule.
-In the figure above,the dark triangle is the
A) consumer surplus. 
B) deadweight loss. 
C) producer surplus. 
D) total cost. 
E) economic profit.

Quizplus · Accepted Answer

Consumer surplus is the difference between the price consumers are willing to pay for a good and the price they actually pay. In the figure, the dark triangle represents the area below the demand curve and above the equilibrium price, which is the consumer surplus.

The Figure Above Shows a Natural Monopoly Regulated Using a Marginal