Hotel Nemo is the only under-sea hotel in the nation. The graph shows its demand curve and marginal cost curve. Hotel Nemo is regulated to produce the efficient output. Draw a point at the firm's output and price when it produces the efficient quantity. Draw a shape to show the consumer surplus. Label it CS. What is the consumer surplus? Consumer surplus equals $. 10 9- 8- 7- 6- 5 4- 3- 2- 1- 0 Price and cost (dollars per booking) 100 200 300 400 500 600 700 800 900 Quantity (bookings per night)

The following graph shows Sparkle's demand curve, marginal-revenue (MR) curve, average-total-cost (ATC) curve, marginal-cost (MC) curve, and profit-maximizing output and price. Demand ATC C MC MR Quantity of Sparkle Toothpaste Indicate which of the labeled areas represent consumer surplus derived from the purchase of Sparkle toothpaste or deadweight loss relative to the efficient level of output. A B D Consumer Surplus Deadweight Loss Suppose the government required Sparkle to produce the efficient level of output. Which of the following describes what would happen to the firm and Sparkle's customers? O Sparkle would earn negative profit, forcing it to shut down, and Sparkle's customers would gain no consumer surplus. O Sparkle would earn zero profit, and its customers would be just as well off as before. O Sparkle would earn positive profit and increase production, boosting consumer surplus. Price, Cost, Revenue

Price ($ per Can) $2.00 1.75 1.50 1.25 1.00 0.75 0.50 0.25 $ per can Quantity Demanded (per Day) b. monopolized market? per can 30 40 50 60 70 80 90 100 Total Revenue A If the marginal cost of supplying a soda is constant and equal to $0.50, what price will students end up paying in a. perfectly competitive market? $ 75.00 Marginal Revenue ($ per Can)

What is meant  by consumer surplus and producer surplus? Using a diagram show that there is a deadweight loss to society from monopoly in terms of total  surplus.