-In Figure 23.1 for a good with no externality, which area represents the total variable cost to the producer?
A)OACQ*
B)BP*C
C)0BCQ*
D)0P*CQ*

Question

-In Figure 23.1 for a good with no externality, which area represents the total variable cost to the producer? 
A)OACQ* 
B)BP*C 
C)0BCQ* 
D)0P*CQ*

Quizplus · Accepted Answer

The area under the marginal cost curve up to the quantity produced (0BCQ) represents the total variable cost to the producer for a good with no externality. This area reflects the sum of the incremental costs for producing each additional unit up to the total quantity Q.