Under a monopoly market structure a. Consumer surplus is maximized. b. Producer surplus is maximized. c....

Question

Question

Under a monopoly market structure

a.	Consumer surplus is maximized.
b.	Producer surplus is maximized.
c.	Producer surplus is minimized.
d.	Consumer surplus is negative
e.	None of the above

Answer 1

Answer #1

Since Monopoly market is a Market in which there is only a single seller of the good.

Profit maximizing condition is

MR=MC

So Monopoly has market power, so producer surplus is maximized only in the Monopoly.

Hence option b is the correct answer

Answer 2

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