Asked by Shalini Ballur on Jun 29, 2024
Verified
Refer to Figure 10.4.1 above. The producer net gains equal:
A) area A.
B) area A - B
C) area A - C
D) area A + C
Producer Net Gains
The total benefits or earnings that producers receive from selling goods or services, over and above their costs of production.
- Scrutinize how monopolies affect the surplus value for consumers and producers and their impact on total welfare outcomes.
Verified Answer
RS
Rayka SiqueiraJul 01, 2024
Final Answer :
C
Explanation :
The producer net gains equal the area between the market price (P1) and the supply curve (S). This area is equal to A - C. Therefore, the correct answer is C.
Learning Objectives
- Scrutinize how monopolies affect the surplus value for consumers and producers and their impact on total welfare outcomes.