Use the Following to Answer Question

question 84

Multiple Choice

Use the following to answer question:
-(Figure: The Market for iPhones) Use Figure: The Market for iPhones.Assume that P_A is the autarky price,P_W is the world price,and D and S represent domestic demand and supply,respectively.Producer surplus in free trade equals the area:

• A)B + C.
• B)B + C + D +E.
• C)B + E.
• D)E.

---

Definitions:

Output

The total amount of goods or services produced by a firm, industry, or economy over a specific period.

Average Total Cost

The total cost of production divided by the quantity of output, representing the per-unit cost of production.

Short Run

The short run in economics refers to a period during which at least one input, such as plant size, is fixed and cannot be changed by the firm.

Competitive Firm

A company operating in a market where it has to compete with other firms for consumers, and has no power to set the price of its products, leading to market-driven pricing strategies.