According to the Graph Shown,producer Surplus Is Area

question 106

Multiple Choice

According to the graph shown,producer surplus is area:

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

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Definitions:

Explicit Costs

Explicit costs refer to direct payments made to others in the course of running a business, such as wages, rent, and materials.

Variable Cost

Costs that change in proportion to the level of output or production activity.

Baking Supplies

Items and ingredients specifically used for the process of baking, such as flour, yeast, baking soda, and baking pans.

Law of Diminishing Returns

This economic law states that as one factor of production is increased while others are held constant, the incremental gains in output will eventually diminish.