Exhibit 13-2 Refer to Exhibit 13-2.The region bounded by P*ABC represents:
A) total costs.
B) total losses.
C) total profits.
D) total consumer surplus.

Question

Exhibit 13-2  Refer to Exhibit 13-2.The region bounded by P*ABC represents:
A) total costs. 
B) total losses. 
C) total profits. 
D) total consumer surplus.

Quizplus · Accepted Answer

The region bounded by P*ABC represents total profits, as it shows the area between the price and the marginal cost curve up to the quantity produced. This is the profit earned by the producer at the given quantity and price level.