23) Refer to Figure 4-2. What area represents total producer surplus at a price of P2?

A) B + D

B) A + B C) A + B + C

D) A + B + C + D + E

24) Refer to Figure 4-2. What area represents the increase in producer surplus when the market price rises from P1 to P2? A) A + C + E

B) B + D

C) C + E

D) A + B

25) Economic efficiency in a competitive market is achieved when

A) producer surplus equals the total amount firms receive from consumers minus the cost of production. B) economic surplus is equal to consumer surplus. C) consumers and producers are satisfied. D) the marginal benefit equals the marginal cost from the last unit sold.

Figure 4-2 Price ($) P P Po 0 C A E Q B D Q Supply Quantity