Table 5.2.3

-Consider the demand and supply curves in Figure 5.2.3. 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

Table 5.2.3
 
-Consider the demand and supply curves in Figure 5.2.3. 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 at competitive equilibrium is represented by the area under the supply curve up to the equilibrium quantity, which is area 0ECD.

Table 5.2.3 -Consider the Demand and Supply Curves in Figure 5.2.3. If