Question

5 of 15 Questions Assignment Score: 850/1500 Resources Lt Give Up? Hint Check Answer Press Esc to exit full screen 1 Media 100/100 Participation Credit Question 5 of 15 > Monopoly — Work It Out: Question 2 of 7 2 Media 100/100 Participation Credit 100/100 3 Question 2 of 2 Attempts Consider an industry with the demand curve (D) and marginal cost curve (MC) shown in the accompanying diagram. There is no fixed cost. If the industry is a single- price menepoly, the memopolist's marginal revenue curve would be MR. Answer the following questions by naming the appropriate points or areas. Correct 100/100 4 Question 1 of 2 Attempts Согтесt 0/100 5 Question of 2 Attempts Which area rellects consumer surplus under perfect competition? 0/100 6 Question O of 2 Attempts 100/100 7 Question 1 of Attempts Under perfect competition consumer surplus is cual lo urea FIIR. Under perfect competition consumer surplus is equal to area ARE Under perfect competition consumer surplus is cqual us area АСК. Under perfect competition consumer surplus is equal to area ACK. Correct IM ) 8 Question 10l 2 Attempts Correct 0/100 9 Question 2 of 2 Attempts Out of Attempts 100/100 10 Question 101 2 Attempts Correct 50/100 11 Question 2 of 2 Attempts Out of attempts 12 Question 1 of 2 Attempts 100/100 Correct 0/100 13 Question of Attempts

Answer 1

The consumer surplus is the difference between the willingness to pay for the commodity and what they actual pay. The consumer surplus is the area below the demand curve and above the price line, in the perfect competition the price equals the marginal cost of production. So the consumer surplus equals the area ARE.

Ans: Under perfect competition the consumer surplus equals the area ARE.