Refer to Figure 13.9. If this industry was originally perfectly competitive and becomes monopolized, the amount of consumer surplus transferred to Ohio Edison in the form of profits is

A) FGBE.
B) BEC.
C) FGBC.
D) FABE.

Question

Glenish Pravasi · Accepted Answer

Final Answer : A, Explanation :  When an industry transitions from perfect competition to a monopoly, the consumer surplus that is transferred to the monopolist as profit is represented by the area between the competitive price and the monopoly price, up to the monopoly quantity. In this case, it is the area FGBE.

Refer to Figure 13.9. If this industry was originally perfectly competitive and becomes monopolized, the amount of consumer surplus transferred to Ohio Edison in the form of profits is

A) FGBE.
B) BEC.
C) FGBC.
D) FABE.

Definitions

Learning Objectives

Learning Objectives

Related questions

Refer to Figure 13.9. If this industry was originally perfectly competitive and becomes monopolized, the amount of consumer surplus transferred to Ohio Edison in the form of profits isA) FGBE.B) BEC.C) FGBC.D) FABE.

Definitions

Learning Objectives

Learning Objectives

Related questions

Refer to Figure 13.9. If this industry was originally perfectly competitive and becomes monopolized, the amount of consumer surplus transferred to Ohio Edison in the form of profits is

A) FGBE.
B) BEC.
C) FGBC.
D) FABE.