The Following Figure Shows the Demand (D), Marginal Cost (MC)

Multiple Choice

The following figure shows the demand (D) , marginal cost (MC) , and marginal revenue (MR) for a monopolist firm.

-Refer to the figure above.Refer to the figure above.Compared to the competitive market outcome,the single-price profit-maximizing monopoly reduces the social surplus by ________.

A) (P₁ P₄) Q₁ + (Q₃ Q₁) (P₁ P₄) /2
B) (P₁ P₃) Q₁ + (Q₃ Q₁) (P₁ P₃) /2
C) (P₁ P₂) Q₁ + (Q₃ Q₁) (P₁ P₂) /2
D) (Q₃ Q₁) (P₁ P₄) /2