-The above figure shows the market for steel ingots.At the social optimum level of output,the social producer surplus is
A) $1,875.
B) $1,575.
C) $2,500.
D) $3,000.

Question

-The above figure shows the market for steel ingots.At the social optimum level of output,the social producer surplus is
A) $1,875. 
B) $1,575. 
C) $2,500. 
D) $3,000.

Quizplus · Accepted Answer

The social producer surplus is calculated as the area above the supply curve and below the price level at the social optimum quantity. Given the options, $1,875 is the correct calculation for this surplus.

-The Above Figure Shows the Market for Steel Ingots