Refer to Figure 13.9. If Ohio Edison is forced to act as a perfect competitor (instead of the monopoly level) , ________ is BEC.

A) the welfare loss
B) consumer surplus
C) the net social gain
D) producer surplus

Welfare Loss

The decrease in social welfare, usually measured as the loss of consumer and producer surplus, resulting from inefficient market conditions or government policies.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they do pay.

Net Social Gain

The overall benefit to society from an economic transaction or policy, taking into account both benefits and costs.