-Refer to the diagram above.When the market is unregulated,producer surplus equals
A) (D
B)(B
C).
B) ½(D
G)(G
F).
C) ½(D
B)(B
C).
D) GBHF.
E) ½(F
H)(H

Question

-Refer to the diagram above.When the market is unregulated,producer surplus equals
A) (D
B)(B
C). 
B) ½(D
G)(G
F). 
C) ½(D
B)(B
C). 
D) GBHF. 
E) ½(F
H)(H

Quizplus · Accepted Answer

Producer surplus in an unregulated market is the area above the supply curve and below the equilibrium price, which is represented by the triangle with base DB and height BC. The formula for the area of a triangle is ½(base)(height).

-Refer to the Diagram Above