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Question
The following figure depicts the downward-sloping market demand (D) curve for a five-day western Caribbean cruise on Carnival Cruise Lines. The price (P) is per person in U.S. dollars, and the quantity (Q) is the number of passenger tickets sold. This figure also shows the companyu2019s relevant marginal revenue (MR) curve and marginal cost (MC) curve. Use this figure to answer the following questions:
If this cruise line is a monopoly that charges a single price of $600 per passenger, what is the amount of consumer surplus?
a. $400,000
b. $600,000
c. $800,000
d. $1.2 million
e. $1.6 million
Answer
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