Multiple Choice
Market Diagram
The following questions refer to the accompanying market diagram. PC and QC are the equilibrium price and quantity if the firm behaves competitively, and PM and QM are the equilibrium price and quantity if the firm is a simple monopoly.
-Refer to Market Diagram.The difference between producer's surplus as a monopolist and producer's surplus when setting price at what would exist in a competitive market is
A) Area C + D + E - G - H.
B) Area C + D - H.
C) Area C + D + E - A - B.
D) Area E + H.
Correct Answer:
Verified
Correct Answer:
Verified
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