Refer to the information provided in Figure 13.9 below to answer the question(s) that follow. Figure 13.9
-Refer to Figure 13.9. If Ohio Edison is forced to produce the efficient level of electricity (instead of the monopoly level), ________ equals area BEC.
A) the net social gain
B) producer surplus
C) consumer surplus
D) welfare loss

Question

Refer to the information provided in Figure 13.9 below to answer the question(s) that follow.  Figure 13.9
-Refer to Figure 13.9. If Ohio Edison is forced to produce the efficient level of electricity (instead of the monopoly level), ________ equals area BEC.
A) the net social gain 
B) producer surplus 
C) consumer surplus 
D) welfare loss

Quizplus · Accepted Answer

The net social gain equals area BEC when Ohio Edison is forced to produce the efficient level of electricity, as this area represents the reduction in welfare loss or the gain in total surplus due to moving from a monopoly output level to an efficient output level.

Refer to the Information Provided in Figure 13