Graph 15-5 This Graph Depicts the Demand, Marginal-Revenue and Marginal-Cost

question 141

Multiple Choice

Graph 15-5 This graph depicts the demand, marginal-revenue and marginal-cost curves of a profit-maximising monopolist.Use the graph to answer the following question(s) .
-Refer to Graph 15-5.Compared to the monopoly outcome, an economy designed by a social planner would have a total surplus greater by an amount equal to:

• A)rectangle ACDB
• B)rectangle CFGD
• C)triangle BDE
• D)triangle BGE

---

Definitions:

Binomial Probability

The probability of obtaining a fixed number of successes in a set number of trials in an experiment with two possible outcomes.

Continuity Correction

A correction used in approximating a discrete distribution with a continuous one, especially in hypothesis testing with binomial distributions.

Normal Probability Distribution

A bell-shaped curve that represents the distribution of many types of naturally occurring data and is defined by its mean and standard deviation.

Discrete Probability Distributions

Probability distributions that characterize the outcomes of experiments with discrete outcomes, specifying the probability of each outcome.