Total Benefit - California State University, Northridge
Total cost is the area underneath the supply curve up to the quantity purchased. This is denoted by Area 3. The value of this area can be derived by taking ½ the length times the height or ½ (2x2) = 2. Total benefit is the area underneath the consumer’s demand curve up to the quantity purchased. This is denoted by Areas 1, 2, and 3. ................
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