-In the above figure, if the market produces the efficient amount of purses then producer surplus equals
A) triangle bcd.
B) triangle adc.
C) rectangle bcde.
D) trapezoid adec.

Question

-In the above figure, if the market produces the efficient amount of purses then producer surplus equals
A) triangle bcd. 
B) triangle adc. 
C) rectangle bcde. 
D) trapezoid adec.

Quizplus · Accepted Answer

Producer surplus is the area above the supply curve and below the price line. In this case, the supply curve is the line segment bc, and the price line is the line segment de. The area above the supply curve and below the price line is triangle bcd.

-In the Above Figure, If the Market Produces the Efficient