(Figure: Producer Surplus II) Look at the figure Producer Surplus II.At a price of P₁,producer surplus equals the area:

A) LMK.
B) P₁K0.
C) P₂M0.
D) P₂P₁KM.

Question

(Figure: Producer Surplus II) Look at the figure Producer Surplus II.At a price of P 1 ,producer surplus equals the area:A) LMK.B) P 1 K0.C) P 2 M0.D) P 2 P 1 KM.

Mollie Langner · Accepted Answer

Final Answer : B, Explanation :  Producer surplus is the area above the supply curve and below the price level. At the price of P 1 , the producer surplus is represented by the area under this price level and above the supply curve, which is the area P 1 K0.

(Figure: Producer Surplus II) Look at the figure Producer Surplus II.At a price of P₁,producer surplus equals the area:

A) LMK.
B) P₁K0.
C) P₂M0.
D) P₂P₁KM.

Definitions

Learning Objectives

Learning Objectives

Related questions

(Figure: Producer Surplus II) Look at the figure Producer Surplus II.At a price of P1,producer surplus equals the area:A) LMK.B) P1K0.C) P2M0.D) P2P1KM.

Definitions

Learning Objectives

Learning Objectives

Related questions

(Figure: Producer Surplus II) Look at the figure Producer Surplus II.At a price of P₁,producer surplus equals the area:

A) LMK.
B) P₁K0.
C) P₂M0.
D) P₂P₁KM.