These are the cost and revenue curves associated with a firm. If the firm in the given graph were to produce Q1 and charge P3,the area C would represent:
A) producer surplus.
B) consumer surplus.
C) deadweight loss.
D) profits.

Question

These are the cost and revenue curves associated with a firm.  If the firm in the given graph were to produce Q1 and charge P3,the area C would represent:
A) producer surplus. 
B) consumer surplus. 
C) deadweight loss. 
D) profits.

Quizplus · Accepted Answer

The Answer of These are the cost and revenue curves associated with a firm.  If the firm in the given graph were to produce Q1 and charge P3,the area C would represent:
A) producer surplus. 
B) consumer surplus. 
C) deadweight loss. 
D) profits.

These Are the Cost and Revenue Curves Associated with a Firm