Use the Following to Answer Question

question 274

Multiple Choice

Use the following to answer question:
Figure: The Profit-Maximizing Output and Price
-(Figure: The Profit-Maximizing Output and Price) Use Figure: The Profit-Maximizing Output and Price.Assume that there are no fixed costs and AC = MC = $200.At the profit-maximizing output and price for a monopolist,producer surplus is:

• A)$3,200.
• B)$6,400.
• C)$1,000.
• D)$1,600.

---

Definitions:

Special Order

A one-time order or contract that is outside of a company’s normal production or service offerings, often requiring special terms.

Variable Cost

Costs that vary directly with the level of production or volume of output.

Fixed Manufacturing Overhead

Costs associated with manufacturing that do not vary with the level of production, such as rent, salaries of permanent staff, and depreciation of factory equipment.

Constrained Resource

A limited resource within a production or project environment that restricts the output or completion time.