Use the Following to Answer Question

question 181

Multiple Choice

Use the following to answer question:
-(Figure: Producer Surplus) Look at the figure Producer Surplus.Total producer surplus is _____ when the price is $45.

• A)$40
• B)$60
• C)$100
• D)$85

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Definitions:

Relevant Cost

Costs that should be considered when making a decision because they will affect the future and they differ among alternatives.

Old Equipment

Tangible assets previously used in operations, possibly obsolete or near the end of its useful life.

Segmented Income Statement

A financial report that separates a company's operations into divisions, regions, or other segments to analyze performance individually.

Fixed Expenses

Consistent costs that do not change in total over a short period, regardless of the level of production or sales.