Changes

Consumer surplus is the net benefit a consumer obtains from buying a good. In supply and demand models, consumer surplus is represented as the value (price times quantity) captured above the price level but below the demand curve.  

'''Consumer surplus''' is the net benefit a consumer obtains from buying a good. In supply and demand models, consumer surplus is represented as the value (price times quantity) captured above the price level but below the demand curve.  

The [[social loss]] caused by a [[monopoly]] is the lost consumer surplus. Whether there is any other loss caused by the existence of a monopoly is open to dispute, however. Therefore, it is up to discussion whether the Sherman Anti-Trust Act is antiquated and should be ignored or replaced by a piece of legislation that would allow for the legal existence of monopolies. Laissez Faire capitalism and economic survival of the fittest would suggest that the United States should legally allow for monopolies to exist.

In a [[monopoly]], the loss in total surplus (known as [[social loss]]) is from a reduction is the consumer surplus while [[producer surplus]] does not rise accordingly.  However, if a monopoly can perfectly [[price discrimination|price discriminate]] the consumer surplus in the market will be zero, since the monopoly extracts all benefits — however, there will not be any [[deadweight loss]] and the market will be efficient.

[[Category:Economics]]

[[Category:Economics]]