Figure 7-4

-Refer to Figure 7-4.At the price of P₁,what is producer surplus
A)A
B)A + B
C)B + C
D)C + D

Name: Figure 7-4 -Refer to Figure 7-4.At the price of P₁,what is producer surplus A)A B)A + B C)B + C D)C + D
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Question

Figure 7-4
 
-Refer to Figure 7-4.At the price of P₁,what is producer surplus
A)A 
B)A + B 
C)B + C 
D)C + D

Quizplus · Accepted Answer

Producer surplus is the difference between the price that producers receive and the minimum price they would accept for producing the good. At price P₁, producer surplus is area B + C. Therefore, the correct answer is C.

Figure 7-4 -Refer to Figure 7-4.At the Price of P₁,what Is Producer