Figure 10-10

-Refer to Figure 10-10.What is the area that represents producer surplus under a monopoly?
A) the triangle 0P₂E
B) the triangle 0P₃H
C) the area 0P₁FH
D) the rectangle P₁P₃HF

Question

Figure 10-10
 
-Refer to Figure 10-10.What is the area that represents producer surplus under a monopoly?
A) the triangle 0P₂E 
B) the triangle 0P₃H 
C) the area 0P₁FH 
D) the rectangle P₁P₃HF

Quizplus · Accepted Answer

Producer surplus under a monopoly is represented by the area above the supply curve (or marginal cost curve) and below the price level set by the monopoly. In this case, it is the area 0P₁FH.

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