-Which area in the above figure shows the producer surplus at the price and quantity that would be set by a single-price monopoly?
A) C + D
B) C + D + E
C) C + D + F + G
D) C + D + F + G + I

Question

-Which area in the above figure shows the producer surplus at the price and quantity that would be set by a single-price monopoly?
A) C + D 
B) C + D + E 
C) C + D + F + G 
D) C + D + F + G + I

Quizplus · Accepted Answer

Producer surplus is the difference between the price a producer receives for a good and the marginal cost of producing that good. In the figure, the marginal cost is represented by the upward-sloping line MC, and the price is represented by the horizontal line P. The producer surplus is the area above the MC curve and below the P curve. This area is C + D + F + G.

-Which Area in the Above Figure Shows the Producer Surplus