Exhibit 39-1 -Refer to Exhibit 39-1.Given the target price P_T,the total deficiency payment made by the government is the area of A) 0P₁CQ₂. B) 0P_TBQ₂. C) P_TBCP₁. D) P_TBEP₂.

Question

Quizplus · Accepted Answer

The deficiency payment is the difference between the target price (P_T) and the market price (P₁) multiplied by the quantity produced (Q₂), represented by the area P_TBCP₁.

Exhibit 39-1 -Refer to Exhibit 39-1.Given the Target Price PT,the Total Deficiency

Exhibit 39-1 -Refer to Exhibit 39-1.Given the Target Price P_T,the Total Deficiency