The Following Figure Shows the Revenue and Cost Curves of a Monopolist

question 230

Multiple Choice

The following figure shows the revenue and cost curves of a monopolist.

-Refer to the figure above.The consumer surplus in this market is ________,while the consumer surplus in the competitive circumstance would have been ________.

• A) $25; $144
• B) $25; $169
• C) $50; $144
• D) $35; $100

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Definitions:

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that suppliers are willing to sell.

Inelastic

Describing a situation in which the demand or supply of a good or service is relatively unresponsive to changes in price.

Demand

The amount of a product or service that customers can and are willing to buy at different price levels over a specified time.

Supply

The total amount of a product or service that is available for purchase at any given price.