Use the information below to answer the following question. Figure 5.2.7
-Consider the demand and supply curves in Figure 5.2.7.If the market is at the competitive equilibrium,which area in the diagram indicates the cost of producing the quantity sold?
A)ABC
B)AEC
C)EBC
D)0BCD
E)0ECD

Question

Use the information below to answer the following question.  Figure 5.2.7
-Consider the demand and supply curves in Figure 5.2.7.If the market is at the competitive equilibrium,which area in the diagram indicates the cost of producing the quantity sold?
A)ABC 
B)AEC 
C)EBC 
D)0BCD 
E)0ECD

Quizplus · Accepted Answer

The cost of producing the quantity sold is represented by the area under the supply curve up to the equilibrium quantity. This area is 0ECD, as the supply curve reflects the marginal cost of production, and integrating this cost up to the equilibrium quantity gives the total cost of production.

Use the Information Below to Answer the Following Question