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

In a monopoly market, producer surplus is represented by the area above the marginal cost curve (MC curve) and below the monopolist's price. In the given figure, the area that represents producer surplus is the trapezium 0P1FH, as it is above the MC curve (P1E) and below the monopolist's price (P1P3). The other options (A, B, and D) do not include the entire producer surplus area.

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