Figure 15-10

-Refer to Figure 15-10.What is the area that represents producer surplus under a monopoly?
A)the triangle 0P₂E
B)the triangle 0P₃H
C)the trapezium 0P₁FH
D)the rectangle P₁P₃HF

Question

Figure 15-10
 
-Refer to Figure 15-10.What is the area that represents producer surplus under a monopoly?
A)the triangle 0P₂E 
B)the triangle 0P₃H 
C)the trapezium 0P₁FH 
D)the rectangle P₁P₃HF

Quizplus · Accepted Answer

Under a monopoly, the producer surplus is represented by the area between the price (P) and the marginal cost (MC) curve up to the quantity produced (Qm). This area is a trapezium, which is 0P₁FH in the given figure. Therefore, the correct answer is C. The other options do not represent the correct area for producer surplus under a monopoly.

Figure 15-10 -Refer to Figure 15-10.What Is the Area That Represents Producer