1.   The monopolist is normally considered to exploit consumers by charging a high price and thereby destroying some consumer surplus.

2.   In theory this process could go as far as equating marginal cost with demand so that the bureaucracy obtains all the consumer surplus.

3.   Of course, this is a long way away from the appropriate measures of consumer surplus, and for economic theorists at least looks all too arbitrary.

4.   They used this to estimate the loss in consumer surplus that would rise from adherence to a hypothetical uniform level of expenditure.

5.   There would be no benefit in terms of increased consumer surplus.

6.   Price and output are determined by the intersection of the supply and demand curves at C.

7.   There is no producer surplus, and total surplus is comprised entirely of consumer surplus which is given by the area ACPc.

8.   Consumer surplus is now reduced to area ARPm.