Refer to Figure 10.4.3. At output Qm, and assuming that the monopoly has set her price to maximize profit, the consumer surplus is:

A) CDE.
B) BDEF.
C) ADEG.
D) 0DEQm.
E) none of the above

Consumer Surplus

The discrepancy between the total sum consumers are prepared and capable of paying for a good or service, and the total sum they end up paying.

Profit Maximize

The method through which a company identifies the optimal pricing and production volume to maximize its profits.

Output

Output is the total amount of goods or services produced by a company, sector, or economy within a certain period, indicating the level of productivity and capacity utilization.