-The above figure shows the market for steel ingots.At the social optimum level of output,the total welfare is

Question

Quizplus · Accepted Answer

At the social optimum level of output, total welfare is maximized. This includes both consumer surplus and producer surplus. The area representing total welfare at the social optimum can be calculated as the area of a triangle with a base (quantity) and height (price) that correspond to the equilibrium point. Without the specific values from the figure, a common approach is to use the formula for the area of a triangle (1/2 * base * height). Assuming the equilibrium quantity and price are such that they form a right-angled triangle with the axes, and given the options provided, the correct answer is inferred based on typical outcomes in such market diagrams. Since the specific details of the figure are not provided, the correct answer is chosen based on common outcomes in market equilibrium scenarios where total welfare is often represented by a significant area under the demand curve and above the supply curve up to the equilibrium point.

-The Above Figure Shows the Market for Steel Ingots