The Above Figure Shows a Market

question 39

Multiple Choice

The above figure shows a market.
-If the market in the figure above changes from perfectly competitive to a profit-maximizing single-price monopoly,the amount of the gain in producer surplus is the area ________.

• A) ABH
• B) BFGH
• C) ACG
• D) BDEH
• E) ACE

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Definitions:

Selling Price

The amount for which a good or service is sold to the customer.

Unrealized Holding Gain

The increase in value of an asset that has not been sold, hence the gain is not realized as actual profit.

Other Comprehensive Income

Income that includes all changes in equity except those resulting from investments by owners and distributions to owners.

Remaining Useful Lives

The estimated periods or units of production during which assets are expected to be productive or useful.