Which creates more total surplus; when a monopoly maximizes revenue or profit?
Answer:
the deadweight loss is minimised if revenue is maximised
Revenue is money flow. For example a business that has $1 million revenue could only make $10k profit. Also a business that does $50k revenue can also make $10k profit. so uping revenue is just upping how much money runs through your company. Profit is after every thing is paid you get to do what you want.
opps sorry miss read the question. In the case of the $1 million Revenue business, it would have more total surplus than the 50k Reveue business so Revenue is the answer.
hope this helps
-David-
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