Use the figure below to answer the following question.

Figure 5.3.4
-Refer to Figure 5.3.4. The graph shows the market for cell phones. When production is efficient, total surplus is ________ and the cost of producing the cell phones sold is ________.
A)$2,250; $2,250
B)$2,250; $3,000
C)$1,500; $750
D)$750; $1,500
E)$1,500; $2,250

Question

Use the figure below to answer the following question.
  
Figure 5.3.4
-Refer to Figure 5.3.4. The graph shows the market for cell phones. When production is efficient, total surplus is ________ and the cost of producing the cell phones sold is ________.
A)$2,250; $2,250 
B)$2,250; $3,000 
C)$1,500; $750 
D)$750; $1,500 
E)$1,500; $2,250

Quizplus · Accepted Answer

Total surplus is the sum of consumer surplus and producer surplus. When production is efficient, total surplus is maximized. In this case, total surplus is $2,250. The cost of producing the cell phones sold is the area below the supply curve and above the horizontal axis. In this case, the cost of producing the cell phones sold is $2,250.

Use the Figure Below to Answer the Following Question