Figure 7-7

-Refer to Figure 7-7.Which segment represents sellers whose costs are less than price
A)AC
B)BC
C)CD
D)CE

Question

Figure 7-7
 
-Refer to Figure 7-7.Which segment represents sellers whose costs are less than price
A)AC 
B)BC 
C)CD 
D)CE

Quizplus · Accepted Answer

Segment BC represents sellers whose costs are less than the price. This is because at point B, the supply curve intersects the demand curve, which determines the equilibrium price. Any seller below point B has costs less than the equilibrium price and can still make a profit. Therefore, segment BC represents these sellers.

Figure 7-7 -Refer to Figure 7-7.Which Segment Represents Sellers Whose Costs Are