Figure 5-7

-Refer to Figure 5-7.What areas represent total revenue at P₂
A)A + B
B)A + C
C)B + D
D)C + D

Name: Figure 5-7 -Refer to Figure 5-7.What areas represent total revenue at P₂ A)A + B B)A + C C)B + D D)C + D
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Question

Figure 5-7
 
-Refer to Figure 5-7.What areas represent total revenue at P₂
A)A + B 
B)A + C 
C)B + D 
D)C + D

Quizplus · Accepted Answer

Total revenue is the sum of consumer surplus and producer surplus. At P₂, consumer surplus is represented by area A and producer surplus is represented by area B. Therefore, total revenue is represented by the sum of areas A and B.

Figure 5-7 -Refer to Figure 5-7.What Areas Represent Total Revenue at P₂