Refer to the graph shown. Areas C and D represent: the loss of surplus by consum
ID: 1097595 • Letter: R
Question
Refer to the graph shown. Areas C and D represent:
the loss of surplus by consumers resulting from a monopoly. the cost to society of increasing output from Qm to Qc. consumer surplus redistributed to the monopolist. the loss of surplus by producers resulting from a monopoly.Refer to the graph shown. Areas C and D represent: the loss of surplus by consumers resulting from a monopoly. the cost to society of increasing output from Qm to Qc. consumer surplus redistributed to the monopolist. the loss of surplus by producers resulting from a monopoly.
Explanation / Answer
Areas C and D represent the loss of surplus by consumers resulting from a monopoly.
Area C goes to the Producer in the form of Monopoly Profits
Area D is the Dead Weight Loss which goes to neither of the producers and consumers and is a resultof Monpoly.