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What is the total consumer surplus when GreatReception operates as a monopolist? ($9800, $7350, $6900, or $2450)

How do I calculate the consumer surplus in a monopolist company? Is there a formula for the calculation.

additional details
The profit maximizing, GreatReception will produce __350____ cell phones and charge __26__ each.

The GreatReception's profit s when producing at the profit-maximizing output at $9100.

So please me out here with these information to calculate the total consumer surplus in a monopolist company?

Thank you

2007-11-19 08:54:50 · 1 answers · asked by ss 1 in Business & Finance Taxes United Kingdom

1 answers

I assume you have left out something vital = such as the break-even cost of production ??

From above info. all I can see is 350 x 26 = 9100 ...

However 9100 is stated as 'profit' which implies that cost of production = zero ...

2007-11-20 02:55:22 · answer #1 · answered by Steve B 7 · 0 0

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