(Figure: The Market for Roses) Use Figure: The Market for Roses.Assume that P_A is the autarky price and P_W is the world price.Producer surplus without international trade would be area:

A) X + Y + Z.
B) W + X + Y.
C) X + Y.
D) Y.

Question

Jessica Jenkins · Accepted Answer

Final Answer : C, Explanation :  Without international trade, producer surplus will be the area of triangle XY which represents the difference between the autarky price (P A ) and the cost of production (represented by the supply curve). Therefore, the correct answer is C, X + Y.

(Figure: The Market for Roses) Use Figure: The Market for Roses.Assume that P_A is the autarky price and P_W is the world price.Producer surplus without international trade would be area:

A) X + Y + Z.
B) W + X + Y.
C) X + Y.
D) Y.

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Learning Objectives

Related questions

(Figure: The Market for Roses) Use Figure: The Market for Roses.Assume that PA is the autarky price and PW is the world price.Producer surplus without international trade would be area:A) X + Y + Z.B) W + X + Y.C) X + Y.D) Y.

Definitions

Learning Objectives

Learning Objectives

Related questions

(Figure: The Market for Roses) Use Figure: The Market for Roses.Assume that P_A is the autarky price and P_W is the world price.Producer surplus without international trade would be area:

A) X + Y + Z.
B) W + X + Y.
C) X + Y.
D) Y.